What is the difference between a devaluation and a depreciation?
What will be an ideal response?
A currency is devaluated when the rate at which the central bank will exchange the local currency for foreign convertible currency, such as dollars, is abruptly increased. A depreciation is the gradual decrease in the purchasing power of a domestic currency in foreign markets relative to domestic markets.
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Economists criticize Robinson-Patman acts because
a. Economists are profit maximizers b. Economists promote unemployment c. Economists are against discounting of goods d. Economists feel the act protects competitors rather than the process of competition
Refer to the above graph of a representative firm in monopolistic competition. What does line 4 represent?
A. Average total cost B. Marginal revenue C. Demand D. Marginal cost
A bank has excess reserves of $1,000 and demand deposit liabilities of $80,000 when the reserve requirement is 25 percent. If the reserve requirement is lowered to 20 percent, the bank's excess reserves will be
A) $1,000. B) $5,000. C) $8,000. D) $9,000.
Joining the Eurozone meant that countries could have unlimited budget deficits.
Answer the following statement true (T) or false (F)