________ means committing oneself to an uncertain future value of one's net worth in terms of home currency.

A. Selling
B. Importing
C. Hedging
D. Speculating


Answer: D

Economics

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The best weather in a decade has given Australia a bumper wheat crop. Australia is a small open economy. Based on this information alone, you would expect that

A) desired investment would decrease. B) desired investment would increase. C) the current account would increase. D) the current account would decrease.

Economics

The largest component of household consumption spending is expenditures on:

a. services. b. durable goods. c. nondurable goods. d. food. e. transportation.

Economics

If we observe that when the price of chocolate increases by 10%, quantity demanded falls by 5%, then the demand for chocolate is price inelastic

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following would not be a consequence of an increase in the U.S. government budget deficit?

a. the U.S. trade balance rises b. the U.S. interest rate rises c. domestic investment in the U.S. falls d. the real exchange rate of the U.S. dollar appreciates

Economics