Under a system of flexible exchange rates, a decrease in the demand for a country's currency on the foreign exchange market will:
a. cause the country's currency to depreciate in value
b. cause the country's currency to appreciate in value.
c. make the country's goods more expensive to foreigners.
d. make foreign goods less expensive to the country's citizens.
a
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If the supply of automobiles becomes more inelastic, then a tax on automobiles is
A) paid more by the buyers after the change than before. B) paid more by the sellers after the change than before. C) always split evenly between the buyers and the sellers. D) paid more by the government after the change than before. E) always paid entirely by the buyers.
If a straight line passes through the point x = 24 and y = 8 and also through the point x = 8 and y = 16, the slope of this line is
A) seven-tenths. B) negative one-half. C) one and one-half. D) negative 8 divided by 4.
Reinsurance allows ________ to reduce the risks of exposure by allocating a portion of the risk to ________ in exchange for a portion of the premium
A) insurance companies; another insurance company B) insurance companies; the insured C) the insured; the insurance company D) the insured; a bank
A retired worker receives a pension that is not indexed to inflation. Which of the following will happen if the rate of inflation rises?
A) The retiree's purchasing power will fall. B) The shareholders of the firm in which he worked will lose. C) The retiree's purchasing power will increase. D) The retiree will be better off.