A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account surplus. The imposition of the capital controls will cause
A) net exports to decrease.
B) real domestic interest rates to rise.
C) real world interest rates to rise.
D) desired national saving to fall.
B
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Refer to the scenario above. Which of the following techniques is used to arrive at the optimum decision in the scenario?
A) Optimization in levels B) Comparative statics C) Total net benefit approach D) Principal of Optimization at the Margin
A partnership requires the agreement of most or all partners to any major decision.
Answer the following statement true (T) or false (F)
Money serves as a store of value when:
A. there is direct trade of goods and services. B. it is a basic measure of economic value. C. it is a means of holding wealth. D. it is used to purchase goods and services.
The characteristics that money should have include:
A. portability, durability, and flexibility. B. durability, flexibility and stability. C. durability, portability, and non-homogeneity. D. scarcity, portability, and divisibility.