Limiting net external wealth effects could be accomplished by limiting movements in the exchange rate. What measure might address this situation?
A) devaluing the currency
B) keeping nominal interest rates exactly 1% higher than one's trading partners
C) borrowing only in U.S. dollars
D) pegging the exchange rate to the currency of the largest creditor nation
Ans: D) pegging the exchange rate to the currency of the largest creditor nation
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Answer the following statement(s) true (T) or false (F)
1. The copycat game does not have a pure strategy Nash Equilibrium. 2. When mixed strategies are allowed, the Copycat Game does have a Nash equilibrium. 3. Nash equilibrium is a normative concept. 4. For an outcome to be Pareto optimal, the players' total payoff must be as large as possible. 5. If either player is receiving his maximum payoff, then that outcome is Pareto optimal.
Table 7-1 Workers Toys1 5212322430535? ? ? In Table 7-1, the average physical product after five workers are hired is ?
A. 5. B. 6. C. 7. D. 8.
A recession is defined as a period when the
a. real GDP increases less than 3 percent. b. real GDP falls by at least 5 percent in a single quarter. c. nominal GDP declines for two consecutive quarters. d. real GDP falls for two consecutive quarters.
A decrease in U.S. income would have what effect on the foreign exchange market for Israeli shekels?
a. shift its demand curve to the right b. shift its demand curve to the left c. shift its supply curve to the right d. shift its supply curve to the left e. have no effect on the demand and supply curves