Under floating exchange rates, investors who speculate on international currency values provide a valuable service by assuming the risks of those who do not wish to speculate.
Answer the following statement true (T) or false (F)
True
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Property rights need to be secure
A) to promote economic development. B) to encourage environmentalism. C) to promote an equal distribution of income. D) all of these choices.
One reason that many have not accepted Keynes' views about how the government should respond to economic downturns is that:
A. Keynes' arguments run often counter to popular economic intuition. B. few economists are familiar with Keynes' work. C. the debate has little to no policy relevance. D. no economists believe that economic stimulus measures actually work.
A leftward shift of a product supply curve might be caused by:
A. an improvement in the relevant technique of production. B. a decline in the prices of needed inputs. C. an increase in consumer incomes. D. some firms leaving an industry.
In the long run, if some monopolistically competitive firms are earning economic losses then
A) firms will leave the industry. B) raise prices until they earn economic profits. C) they will increase production until marginal costs fall. D) new firms will enter the industry.