Which of the following would lead to a depreciating dollar?
a. a higher federal deficit
b. lower interest rates
c. higher interest rates
d. contractionary monetary policy
b
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All of the following are differences in capital flows today from the past, EXCEPT
A) the increasing variety of financial instruments. B) the larger number of companies listed on world stock exchanges. C) the need to protect from sudden changes in currency values. D) the problem of volatility in financial capital flows. E) the reduction in transaction costs for foreign investment.
An increase in the price level that leads to no expansion of economic activity ________
A) is consistent with classical models B) implies that there has been no change in the money supply C) is a strictly short-run phenomenon D) all of the above E) none of the above
Continuing with the same vacation-insurance company from the preceding question, what vacation-day price(s) would be acceptable to both the family and the insurance company?
a. 3 or 4 b. 3,4 or 5 c. 3,4,5 or 6 d. 3,4,5,6 or 7
According to Hernando de Soto, poor countries should focus their development policies on all of the following except
A. Reducing bureaucratic barriers. B. Improving infrastructure to facilitate business activity. C. Increasing taxes on private companies. D. Encouraging private ownership.