A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts.
B. sell foreign currency resulting from the sale of a U.S. treasury bond.
C. purchase foreign currency in order to import a BMW.
D. purchase foreign currency in order to purchase a U.S. treasury bond.
Answer: D
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Earning-sharing regulation involves
A) setting the monopoly's price equal to its average total cost. B) requiring that the monopoly share its profits with its customers if the profits rise above a certain level. C) setting a maximum price the monopoly may charge and maintaining it for many years. D) assuming a natural monopoly will not charge a higher than profit-maximizing price. E) setting the monopoly's price equal to its marginal cost.
When faced with the Great Recession, both Presidents, most members of Congress and Federal Reserve officials showed that they were really true believers in the ____________ school of economic thought.
A. Keynesian B. Supply side C. New Classical D. Behaviorist
A perfectly competitive producer faces a demand curve for its own product that is
A. horizontal. B. upward sloping. C. vertical. D. downward sloping.
Answer the following questions true (T) or false (F)
1. "The distribution of income should be left to the market" is an example of a positive economic statement. 2. Positive analysis is concerned with "what ought to be," while normative analysis is concerned with "what is." 3. "A decrease in the price of tablet computers will decrease the demand for desktop computers." This statement is an example of a normative economic statement.