Which of the following would cause a decrease in the exchange value of the U.S. dollar?
a. A decrease in the amount of foreign debt purchased by U.S. citizens
b. An increase in U.S. exports
c. An increase in U.S. imports
d. Increased demand by foreigners to buy U.S. government securities
c
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The cost incurred from the production of an additional unit of a product
A) is called a loss. B) is called opportunity cost. C) must be zero for a firm to be efficient. D) is a marginal cost to the firm.
What is rent seeking and how does it influence the inefficiency of monopoly?
What will be an ideal response?
Which of the following is TRUE about current cost method and market value method?
A) They are used by the BEA to place current values on foreign indirect investments. B) These methods lead to the same valuations. C) Based on the current cost method, the BEA's 2009 estimate of U.S. net foreign wealth was $2,737.86 billion. D) The current cost method is preferred by the BEA. E) Foreign direct investments of the U.S. are valued at their original purchase price.
Suppose a Treasury bond will mature in 4 years. If the bond pays a coupon of $200 per year and will make a final par value payment of $5,000 at maturity, what is its price if the relevant market interest rate is 3%?
A) $5,185.85 B) $5,304.26 C) $5,743.42 D) $6,011.82