On a given day, the exchange rate for one U.S. dollar is 1.2 Canadian dollars and 0.5 British pounds. Exactly six months later, the exchange rate for one U.S. dollar is 1.1 Canadian dollars and 0.7 British pound. From the information given, we can say that:
a. the dollar has appreciated relative to Canadian dollars and depreciated relative to British pounds.
b. the dollar has appreciated relative to British pounds and depreciated relative to Canadian dollars.
c. the dollar has appreciated relative to both British pounds and Canadian dollars.
d. the dollar has depreciated relative to both British pounds and Canadian dollars.
e. there is no change in the relative value of the U.S. dollar.
b
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In which of the following situations would GDP not change?
A. Domestic consumers begin to buy less imported wine, and instead spend just as much money on domestically produced wine. B. More and more domestic consumers opt to build a new home, rather than spending the same money on an already existing home. C. Without reducing the number of automobiles sold, domestic automobile producers decide to reduce the number of automobiles they produce, rather than producing cars that would end up as unsold inventory. D. As domestic consumers buy fewer tobacco products, tobacco manufacturers instead sell their products, at the same price, to foreign buyers.
The four largest firms in an industry account for the following value of industry sales: 12 percent, 8 percent, 5 percent and 4 percent. Calculate the four-firm concentration ratio. Would this industry be regarded as competitive or concentrated?
What will be an ideal response?
Assume that a perfectly competitive financial market for loanable funds is in equilibrium. Which of the following is most likely to occur to the quantity demanded and quantity supplied of loanable funds if the government imposes an effective interest rate ceiling?
A) Increase/Increase B) Increase/Decrease C) No change/No change D) Decrease/Increase E) Decrease/Decrease
Refer to the normal-form game of bargaining shown below.Union?Management??$0$250$500?$0($0, $0)($0, $250)($0, $500)?$250($250, $0)($250, $250)(-$10, -$10)?$500($500, $0)(-$10, -$10)(-$10, -$10)Suppose that management and the union are bargaining over how much of a $500 surplus to give to the union. It is assumed that the surplus can only be split into $250 increments. Furthermore, negotiations are set up such that management and the union must simultaneously and independently write down the amount of surplus to allocate to the union. The payoff structure to this one-shot bargaining game is listed in Figure 10-16. Find the Nash equilibrium(ia) to this game.
A. Union write down $250 and management write down $250. B. Union write down $500 and management write down $0. C. Union write down $0 and management write down $500. D. All of the statements associated with this question constitute Nash equilibria.