The equation for the given saving schedule is:
A. Y d = -20 + .8S.
B. Y d = 20 + .2S.
C. S = -20 + .2Y d .
D. S = 20 + .8Y d .
C. S = -20 + .2Y d .
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A) long; long B) long; short C) short; long D) short; short
The firm learns that the probability of launch estimated for the voice activated software was too optimistic and instead is actually 65%. Is it still worth for the company to develop the simplified software?
a. No, because the expected return is lower b. No, because the expected return is higher c. Yes, because the expected return is higher d. Yes, because the expected return is lower
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and reserve-related (central bank) transactions become more negative (or less positive). b. Real GDP falls, and reserve-related (central bank) transactions remain the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Fixed exchange rates:
A. do not restrict exchange rate movements. B. are difficult to maintain without sufficient official reserves. C. give governments great flexibility in their use of monetary policy. D. limit foreign exchange market intervention.