Refer to the figure above. When the real exchange rate is above R*:
A) net exports are zero.
B) net exports are positive.
C) net exports are negative.
D) net exports can be positive or negative depending on the value of R*.
C
You might also like to view...
Suppose Diego deposits $4,000 in his bank. If the reserve ratio is 10 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks
A) $0 B) $4,000 C) $10,000 D) $40,000
A risk-averse manager is hired to run a firm for shareholders. If shareholders cannot observe the manager's effort, which would be the best employment contract?
a. a high-powered incentive contract to elicit maximum effort. b. a fixed salary. c. a moderately powered incentive scheme that elicits some effort without exposing the manager to too much risk. d. an incentive scheme that provides maximum incentives and maximum insurance.
A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:
A. screening. B. building a reputation. C. disclosure laws. D. statistical discrimination.
If there were no usury law the quantity of money borrowed would be $_______ billion.
A. 125
B. 250
C. 275
D. 300