Firms engaged in international trade can reduce exchange-rate risk by:
A. paying for foreign goods only when they are delivered.
B. buying on credit.
C. hedging in the futures market.
D. dealing only with highly reputable firms.
C. hedging in the futures market.
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Luxury brands like designer sunglasses are goods that may exhibit snob effects. Suppose this is true, and the price for a particular brand increases. What happens to the component changes in the quantity demanded?
A) Pure price effect and snob effect are negative B) Pure price effect and snob effect are positive C) Pure price effect is positive, snob effect is negative D) Pure price effect is negative, snob effect is positive
Bank examinations by the FDIC help reduce the ________ problem, by preventing bank managers from allocating funds already obtained from depositors to non-creditworthy loans.
A. moral hazard B. adverse selection C. contrary selection D. principled hazard
the multiplier is a value between zero and one
a. true b. false
Refer to the information provided in Table 31.2 below to answer the question(s) that follow.Table 31.2PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 50 60 2153 50 70 2254 50 80 230Refer to Table 31.2. From Period 3 to Period 4, the marginal return to capital is equal to
A. 0.5. B. 2.0. C. 2.88. D. 3.21.