Which of the following statements concerning speculators is true?
a. There is no risk involved in speculative activity.
b. They simultaneously buy and sell a currency in different markets.
c. They hope to profit by trading a currency at a different exchange rate later.
d. Their actions do not affect exchange rates.
e. Their actions are exactly like those of arbitrageurs.
C
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Recent proposals for immigration reform that have drawn intense political fire include the following, except:
A. Increase fines for employers who knowingly hire illegal immigrants B. Implement a new amnesty program for illegal immigrants C. Shift immigration quotas away from family ties toward education-level and skills D. Create a guest-worker program with a tight cap
An externality refers to the idea that
A) explicit costs differ from implicit costs. B) decision-makers do not internalize all the costs. C) we cannot do anything that does not affect other people. D) private and internal costs differ.
Expansionary monetary policy will decrease interest rates and decrease the velocity of money.
Answer the following statement true (T) or false (F)
Suppose a manufacturer of software develops a new computer program that sells for $50. The $50 cost includes $0.25 for the CD it is stored on, $5 for the labor of the company software programmers, and $1.75 for packaging materials and transportation costs. Value added by the software company is
A) $49.75. B) $48.25. C) $48. D) $44.75.