If the government of India implemented a policy that decreased national saving, its real exchange rate would
a. depreciate and Indian net exports would rise.
b. depreciate and Indian net exports would fall.
c. appreciate and Indian net exports would rise.
d. appreciate and Indian net exports would fall.
d
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What was the GATT, why was it established, and why and with what was it replaced?
What will be an ideal response?
Given the information in the table above
A) neither country has a comparative advantage in cloth. B) Home has a comparative advantage in widgets. C) Foreign has a comparative advantage in widgets. D) Home has a comparative advantage in both cloth and widgets. E) neither country has a comparative advantage in widgets.
Asymmetric information discourages the movement of funds from savers to borrowers, because ________
A) big risks have high payoffs B) the safe choice is always preferable to the risky choice C) taking risks is inefficient D) the loss arising from a failed project must be borne by the borrower, rather than the lender
According to the classical model, if the government wanted to increase employment, it could do so by increasing its own spending. That would lead firms to produce more output, for which they would need to hire more workers
a. True b. False