Which of the following is consistent with moving from a surplus to equilibrium in the market for foreign-currency exchange?
a. the exchange rate appreciates making domestic goods relatively more expensive.
b. the exchange rate appreciates making domestic goods relatively less expensive.
c. the exchange rate depreciates making domestic goods relatively more expensive.
d. the exchange rate depreciates making domestic goods relatively less expensive.
d
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In August 2005, hurricane Katrina hit the Gulf States damaging approximately 20 percent of our oil refining capacity. This event
a. resulted in a massive building of new refining capacity which shifted the supply curve of gasoline to the left b. shifted the supply curve of gasoline to the left thereby raising its price c. shifted the demand curve of gasoline to the right because less gasoline was available d. resulted in an inward shift in both the supply curve of gasoline and the demand curve for gasoline because less gasoline was available and, as a result, there was less demand for gasoline e. resulted in an outward shift in both the supply curve of gasoline and the demand curve for gasoline because less gasoline was available and, as a result, there was less demand for gasoline
There is a close relationship between changes in a nation's rate of productivity growth and changes in its average real hourly wage because if average real hourly wage and output per worker is
What will be an ideal response?
An increase in which of the following variables will cause an increase in the user cost of capital?
A) rt B) ?t C) ?et D) all of the above E) none of the above
One suggested policy that industrially advanced nations could adopt to foster economic growth in less developed nations would be to:
A. Leave the responsibility to the World Bank B. Direct foreign aid to the poorest DVCs C. Recruit more skilled workers from DVCs D. Target the banking sector for the most help