If there is an excess supply of Tunisian dinars at a given exchange rate, what will lead the market into an equilibrium?
a. Finding themselves unable to buy all the dinars they want to buy, buyers will accept a lower price.
b. Finding themselves unable to buy all the dinars they want to buy, sellers will offer a lower price.
c. Finding themselves unable to sell all the dinars they want to sell, sellers accept a higher price.
d. Finding themselves unable to buy all the dinars they want to buy, buyers offer a higher price.
e. Finding themselves unable to sell all the dinars they want to sell, sellers accept a lower price.
E
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A. in doing so, one sacrifices interest income. B. bond prices are highly variable. C. the rate at which money is spent may decline. D. deflation may reduce its purchasing power.
The figure above shows a nation's production possibilities frontier. In the figure, point B shows
A) an unattainable point. B) an attainable point. C) a point with a free lunch. D) a point with no trade off. E) a point at which there are unemployed resources.
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A) 5.45% B) 5.500% C) 5.650% D) 5.60%
According to Tobin's q theory, when equity prices are high the market price of existing capital is ________ relative to new capital, so expenditure on fixed investment is ________
A) cheap; low B) dear; low C) cheap; high D) dear; high