Which of the following factors might make capital mobility less than perfect?
a. Risks due to exchange rate changes
b. Differential risk on the assets of different countries
c. Technological progress, which improves the quality of information on foreign assets
d. both a and b.
e. All of the above
E
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If the world price for good A is below the domestic price for good A without trade, then the price the consumer pays for good A will ________ and the price the producer receives for good A will ________ with trade.
A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase
Issuing tradable emission allowances to polluting firms will result in those firms polluting more than is socially desirable
Indicate whether the statement is true or false
According to the economy's self-correcting mechanism, how does the economy return to potential output following a negative demand shock? How is the recovery process different, if the government implements a policy of economic stimulus?
What will be an ideal response?
In 1975 the Swiss National Bank announced a policy of targeting ________
A) the level of income B) interest rates C) rational expectations D) monetary aggregates