Refer to Figure 19-3. Which of the following is not true?
A) Thai exports to the United States are more expensive at exchange rates greater than $.03/baht than at the equilibrium exchange rate.
B) The baht is overvalued at exchange rates greater than $.03/baht.
C) To achieve an exchange rate greater than $.03/baht, the Bank of Thailand must buy surplus dollars with bahts.
D) Thai imports from the United States are cheaper at exchange rates greater than $.03/baht than at the equilibrium exchange rate.
C
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If the marginal cost curve is above the average total cost curve, then
A. average variable cost is decreasing. B. average total cost is decreasing. C. average total cost is increasing. D. average total cost is constant.
The bond markets are important because they are
A) easily the most widely followed financial markets in the United States. B) the markets where foreign exchange rates are determined. C) the markets where interest rates are determined. D) the markets where all borrowers get their funds.
Refer to the information above. What is the approximate value of the multiple of combined physical and human capital that the rich country must have in order to produce 10 times the output per person of the poor country?
A) 1000 B) 100 C) 25 D) 15
The "stagflation" of the 1970s ________ Keynesian macroeconomics until the Keynesians started to build the consequences of changing inflationary expectations and ________ shocks into their models
A) reinforced the dominance, supply B) reinforced the dominance, demand C) deepened the eclipse, supply D) deepened the eclipse, demand