You are staying in London over the summer and you have a number of dollars with you. If the dollar appreciates relative to the British pound, then other things the same,
a. the dollar would buy more pounds. The appreciation would discourage you from buying as many British goods and services.
b. the dollar would buy more pounds. The appreciation would encourage you to buy more British goods and services.
c. the dollar would buy fewer pounds. The appreciation would discourage you from buying as many British goods and services.
d. the dollar would buy fewer pounds. The appreciation would encourage you to buy more British goods and services.
b
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What does it mean for an investment bank conducts a "road show"?
A) It involves an investment bank marketing its services to firms considering new issues. B) It is when an investment bank goes to the SEC to seek approval for a new issue. C) It is when firms seeking an underwriter consider alternative investment banks. D) It involves visits to institutional investors who might want to buy the security issue.
Cash payments to a steel mill for steel used in production of automobiles would be an example of
a. sunk costs b. fixed costs c. explicit costs d. implicit costs e. entrepreneurial costs
Graphically, a firm's total profit equals:
a. the distance between the firm's marginal revenue and marginal cost curves. b. the distance between the firm's demand and supply curves c. the distance between the firm's total revenue and total cost curves. d. the distance between the average revenue and marginal revenue curves.
Discuss why many economists maintain that continued deficit spending by government is likely to "crowd out" (decrease) investment spending in the long run.
What will be an ideal response?