Ceteris paribus, the greater the foreign holdings of the U.S. treasury securities:

a. the lower the value of the U.S. dollar in the foreign exchange market.
b. the higher the interest rate in the U.S.
c. the greater the level of U.S. imports.
d. the lower the wealth of the U.S. citizens.
e. the lower the tax rate in the U.S. economy.


d

Economics

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The above figure shows the U.S. market for 1 carat diamonds. With free trade, U.S. production of diamonds is equal to ________ diamonds. When the quota illustrated in the figure is in place, U.S. production is equal to ________ diamonds

A) 300,000; 100,000 B) 100,000; 500,000 C) 300,000; 500,000 D) 100,000; 300,000 E) 900,000; 700,000

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If you exhibit endowment effect, then you

A) decide rationally when making decisions about selling but not when making decisions about buying. B) have a strong attachment to things you already own. C) buy something you cannot afford. D) decide rationally when making decisions about buying but not when making decisions about selling.

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All the costs of a transaction are referred to as

A) transfer costs. B) transactions costs. C) marketing expenditures. D) accounting costs.

Economics

Marvin's Metal Company produces screws that it sells to Ford, which uses the screws as a component of its cars. In the national income accounts, the screws are classified as

A. final goods. B. capital goods. C. inventory. D. intermediate goods.

Economics