If the home currency has a real depreciation, what is the situation?
A) it takes more home goods to purchase the same quantity of foreign goods
B) it take fewer home goods to purchase the same quantity of foreign goods
C) the nominal exchange rate must have risen
D) the nominal exchange rate must have fallen
Ans: A) it takes more home goods to purchase the same quantity of foreign goods
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Suppose environmental groups pressure the local government to reduce the number of pollution rights to be sold. Other things equal,
a. pollution would not be affected b. the price of pollution rights would rise, and the amount of pollution would decrease c. the price of pollution rights would fall, and the amount of pollution would decrease d. the price of pollution rights would fall, and the amount of pollution would increase e. the price of pollution rights would rise, and the amount of pollution would increase
Which of the following is true of the Industrial Revolution? a. It led to a widening of income inequality between nations
b. It led to an increase in the foreign reserves of all nations. c. It led to a twofold increase in the per-capita GDP of all nations. d. It helped artisans produce the highest-quality products.
How can actual investment be greater than desired investment, and what type of gap is the economy experiencing when this occurs?
What will be an ideal response?
The person least likely to receive a payment from a corporation in a year of losses is the
A. bondholder. B. preferred stockholder. C. common stockholder. D. bank that loaned money to the corporation.