The limits of the terms of trade are determined by the:
a. distribution costs in each country.
b. stock of foreign exchange in each country.
c. average total costs of producing the commodities in each country.
d. opportunity costs in each country.
e. currency exchange rate between the trading partners.
d
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An economy with better technology is likely to:
A) achieve higher productivity. B) have lower levels of human capital. C) have less capital stock. D) use more labor than capital.
The combined effects of a fiscal contraction and a monetary expansion are
a. higher real interest rates. b. exchange rate depreciation. c. increased current account deficit. d. All of the above are correct.
By raising the discount rate, the Federal Reserve ________ banks from borrowing more reserves.
A. encourages B. discourages C. prohibits D. short-changes
What is the social cost of a monopoly? Explain
What will be an ideal response?