In a floating exchange rate system, the equilibrium exchange rate is determined
a. by the price of the foreign currency
b. by the government of the country issuing the foreign currency
c. by the interest rate in the country issuing the foreign currency
d. by the Federal Reserve
e. at the intersection of the demand curve and supply curve for the foreign currency
E
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When a government turns a deficit into a surplus we would expect
A) interest rates to rise. B) interest rates to decrease. C) the demand curve for loanable funds to shift rightward. D) that more investment is crowded out.
Use the information in the above table. The external marginal costs are
A) increasing. B) decreasing. C) constant. D) inverse to quantity produced.
The overall U.S. balance of payments
a. shows a deficit b. shows a surplus c. is the merchandise trade balance d. equals exports minus imports e. shows how deficits in one account are exactly offset by surpluses in other accounts
Which of the following will not lead to increase in the marginal revenue product?
a. MPP increases without any changes in the price. b. Price of the product increases without any changes in MPP. c. MPP and price of the product increases. d. MPP remains the same and price of the product falls.