What is the fall in domestic revenue due to this unexpected move in the exchange rate?

a. $389
b. $1,289
c. $2,896
d. $3,896


Ans: d. $3,896

Economics

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Steve holds 100 shares of a company that currently trade at $10 . There is a 50 percent probability of the market price increasing to $15 within the next quarter. If Steve waits for the market price of shares to increase before selling them off, he would be considered risk averse

Indicate whether the statement is true or false

Economics

Some economists say that "full employment" exists in an economy when:

a. cyclical unemployment is 2 percent. b. cyclical unemployment is 4 to 6 percent. c. frictional unemployment is zero. d. the unemployment rate is 4 to 7 percent. e. the natural unemployment rate is zero.

Economics

Kyle puts a greater proportion of his portfolio into government bonds. Kyle's action

a. increases both risk and the average rate of return. b. decreases both risk and the average rate of return. c. increases risk, but decreases the average rate of return. d. decreases risk, but increases the average rate of return.

Economics

Figure 4-16


Assume that Figure 4-16 shows the supply of steak. An increase in the price of pork will change the supply from

a.
S1 to S2.

b.
S2 to S1.

c.
S2 to S3.

d.
S1 to S3.

Economics