Which of the following will cause a change in the exchange rate?
A) changes in real interest rates
B) changes in consumer preferences
C) changes in the perception of economic stability
D) all of the above
Answer: D
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The Ricardian proposition that international trade will benefit any country ("gains from trade") as long as the world terms of trade do not equal its autarkic relative prices is a straightforward and powerful concept
Nevertheless, it is impossible to demonstrate empirically. Why?
For several years, a company with a patent can enjoy ______.
a. sharing technology openly b. freedom from regulation c. fair competition d. a monopoly
Which of the following is an example of a transfer payment?
a. purchase of a producer good b. purchase of a service c. fixed investment d. farm subsidy
If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be:
A. 4.00. B. 2.50. C. 0.40. D. 0.25.