Monopolistic competitors in long-run equilibrium will generally find that they are earning economic profits
a. True
b. False
Indicate whether the statement is true or false
False
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If foreigners held U.S. assets worth $200 billion during a certain year and the value of the current account for that year was -$189 billion, the total volume of foreign assets held domestically was worth ________
A) $101 billion B) $389 billion C) $421 billion D) $211 billion
An argument in favor of price discrimination is that this pricing strategy permits some consumers who otherwise would be excluded from a market to buy a good or service
a. True b. False Indicate whether the statement is true or false
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.
Using a fixed exchange rate to undervalue your currency:
A. will increase your exports. B. makes imports very expensive for your citizens. C. will encourage capital flow to countries other than your own. D. All of these statements are true.