If a firm in Thailand borrows dollars from a U.S. bank, its interest payments on the loan in bahts will decrease if the baht appreciates against the dollar
Indicate whether the statement is true or false
TRUE
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If potential GDP for the first quarter of 2013 = $75.8 billion, and real GDP for the first quarter of 2013 = $80.3 billion, then the output gap was
A) -5.9%. B) -5.6%. C) 5.6%. D) 5.9%.
The marginal productivity standard of income distribution:
a. provided maximum incentive for productivity b. requires government redistribution of income c. is based on the theory that a dollar income provided greater utility to a poor person than a rich person d. all of the above
For most countries, international goals are generally:
A. much more important than domestic goals. B. less important than domestic goals. C. slightly more important than domestic goals. D. equally important as domestic goals.
Briefly describe "dollarization." Discuss the advantages and disadvantages of dollarization" as a means of establishing a fixed exchange rate.
What will be an ideal response?