If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, both countries would benefit from trade if the actual terms of trade between corn and wheat were 4:1.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Janae purchased 10 Bitcoins in February with the intention of holding them until October and then selling them at a higher price. Janae was engaged in
A) diversification. B) arbitrage. C) speculation. D) asset liquification.
If the Federal Reserve announces that its target for the federal funds rate is rising from 4 percent to 4.25 percent, how do you expect workers and firms to react?
A) If the Fed's announcement is not credible, workers and firms will not expect inflation to fall so they will reduce their consumption and investment spending, which will increase aggregate demand and reduce inflation. B) As long as the Fed's announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation. C) As long as the Fed's announcement is credible, workers and firms will increase their consumption and investment spending, which will increase aggregate demand and inflation. D) Workers and firms will incorporate the increase in interest rates into their expectations of inflation, and they will expect inflation to rise as a result of Fed's policy announcement.
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?
MV = PY represents the
A. banking equilibrium. B. federal funds equation. C. Keynesian equation of equality. D. quantity theory of money.