An increase in a country’s terms of trade means that
a) export-import contracts are of longer duration
b) imports have become relatively more expensive
c) the exchange rate is rising
d) the benefits from trade are increasing
e) the country is becoming less open to foreign trade
d) the benefits from trade are increasing
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In the context of the environment, the type of transactions costs that includes covering all the costs associated with the bargaining process, such as fees for attorneys, negotiators, and accountants, are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
Purchases of inventories by
A) firms are not counted in investment spending. B) firms are also counted in investment spending. C) households are also counted in investment spending. D) households and Firms are also counted in investment spending. E) foreign consumers are counter in investment spending.
A contractionary monetary policy decreases net exports by ________ interest rates and ________ the value of the dollar
A) lowering real; decreasing B) lowering real; increasing C) raising nominal; increasing D) raising real; increasing
The management of expectations has increased in importance in policymaking in recent decades with the rise of ________
A) traditional Keynesian theory B) institutionalist theory C) torsion theory D) new Keynesian theory