Why would candy companies in the United States dislike the U.S. trade barriers on imported sugar?
a. Barriers decrease the cost of production, making candy less expensive.
b. Barriers decrease the cost of production, making candy more expensive.
c. Barriers increase the cost of production, making candy more expensive.
d. Barriers increase the cost of production, making candy less expensive.
c. Barriers increase the cost of production, making candy more expensive.
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Which of the following was NOT a creation of the Bretton Woods conference?
A) World Bank B) IMF C) IBRD D) WTO E) None of the above.
Which of the following countries is not a member of NAFTA?
A) Canada. B) The United States of America. C) Mexico. D) All three countries form part of NAFTA.
Assuming sticky prices and given expectations of future exchange rates, what is the short-run effect on the exchange rate of the U.S. dollar (purchasing euros) and on domestic and foreign rates of return if there is a temporary increase in the quantity of U.S. dollars?
a. Rates of return on domestic and foreign assets diverge, as the dollar appreciates. b. Domestic and foreign rates of return both fall, as the dollar depreciates. c. Domestic and foreign rates of return converge, as the dollar depreciation lowers returns for U.S. investors who purchase euro-based assets. d. Rates of return on euro assets fall, causing investors to switch into U.S. assets and, therefore, the U.S. dollar appreciates against the euro.
If P were 7 and Q were 1,200, how much would MV be?
What will be an ideal response?