The purchasing power parity theory is useful in making ____ predictions about exchange rates and their fluctuations.
A. long-run
B. intermediate-run
C. medium-run
D. short-run
Answer: A
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If a production possibilities curve for books and magazines is straight, then
A) the opportunity cost of increasing book production remains constant regardless of the total quantity produced. B) the opportunity cost of increasing book production continues to decline as total production increases. C) the opportunity cost of increasing book production continues to increase as total production increases. D) the opportunity cost of increasing book production is independent of the shape of the curve.
Economic investment refers to ________.
A. buying a financial asset for a gain. B. selling a financial asset for a gain. C. making new additions to a firm's stock of capital. D. postponing purchases of goods and services.
The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would reinforce each other to achieve that objective?
A. Buying government securities and raising the reserve requirement. B. Selling government securities and raising the discount rate. C. Buying government securities and lowering the discount rate. D. Selling government securities and lowering the discount rate.
United States’ economic activity is responsible for what percentage of worldwide shipping volume?
a. 20 percent b. 43 percent c. 28 percent d. 50 percent