How does rapid economic growth at home affect foreign exchange markets?
What will be an ideal response?
It increases home country demand for foreign currencies as it increases imports. The home currency depreciates.
You might also like to view...
When economists say entrepreneurs have a comparative advantage in arbitrage activity, they are saying
A) entrepreneurs are efficient at selling their products below cost. B) entrepreneurs are efficient at selling their products at cost. C) entrepreneurs are efficient at discovering opportunities to buy goods low and sell them at higher prices. D) entrepreneurs are efficient at resolving disputes of interest over titles to scarce property rights.
_____ is an example of human specificity which raises the risks associated with opportunism
a. Car insurance purchased by an individual for his/her favorite car. b. Investment of an employer in company-specific skills. c. Purchasing immovable machines for a particular facility. d. Investment in research and development
Based on this graph, the result of supply-side policies shifting the long-run and short-run aggregate supply curves rightward is ______.
a. an equilibrium point higher up the aggregate demand curve
b. an equilibrium point lower down the aggregate demand curve
c. a leftward shift of the aggregate demand curve
d. a rightward shift of the aggregate demand curve
Indexing Social Security payments is done using the:
A. PPI. B. RPI. C. CPI. D. GDP deflator.