If a depreciation of the British pound is to be prevented, the U.S. Federal Reserve has to buy British pounds and sell U.S. dollars

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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What two measures of macroeconomic activity are often referred to as the "twin deficits"?

A) the budget deficit and the trade balance B) net capital flows and net exports C) the foreign exchange deficit and net foreign investment D) the saving-investment deficit and the export deficit

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If average cost is falling, then marginal cost must be falling.

Answer the following statement true (T) or false (F)

Economics

Someone who values a lottery at less than the expected value is

a. a risk lover b. risk neutral c. risk averse d. one who tends to play lots of lotteries

Economics

A basic rule of thumb to predict inflation is that it equals:

A. nominal wage increases minus productivity growth. B. real wage increases minus productivity growth. C. productivity growth minus nominal wage increases. D. productivity growth plus nominal wage increases.

Economics