If Country A's central bank wanted to increase the value of its currency, its reserves account in the balance of payments would:
a. Become more negative.
b. Become more positive.
c. Not change.
d. Change only if there were no offsetting changes in the net errors and omissions account.
.A
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When financial markets are __________, leverage ______________; when they are _______, leverage ____________.
A. booming; multiplies the gains; crashing; magnifies the losses B. booming; magnifies the losses; crashing; multiplies the gains C. crashing; mitigates the losses; booming; mitigates the gains D. crashing; magnifies the losses; booming; mitigates the gains
Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Atul can bottle and sell three cases per week. What is the maximum total output possible if Riva hires Atul?
a. 3 cases b. 4 cases c. 7 cases d. 11 cases
The economy will reach equilibrium in a simple economy only if saving is
A. greater than investment. B. less than investment. C. equal to investment. D. equal to disposable income.
Diagram a model of a perfectly competitive market and a separate model of a firm experiencing economic profits. Explain and illustrate on your models the changes that take place in the long run. Be sure to explain why any changes take place.
What will be an ideal response?