The classical theory predicts that an increase in the supply of savings will
A. lower interest rates and reduce investment.
B. lower interest rates and expand investment.
C. raise interest rates and reduce investment.
D. raise interest rates and expand investment.
B. lower interest rates and expand investment.
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What are the three main exchange rate systems, and how do they operate?
What will be an ideal response?
The Coase theorem implies that the initial allocation of property rights:
A. determines all aspects of the final outcome of the negotiated agreement. B. does not determine which person will be entitled to engage in the externality generating activity, but does determine which person will receive compensation. C. must be assigned to the person with the greatest costs. D. determines which person will be entitled to engage in the externality generating activity, but does not affect which person will receive compensation.
Voting rights and dividends for stocks are given ______.
a. in equal amounts to each individual shareholder b. according to the amount of shares each person owns c. only to preferred shareholders d. only to bondholders
Under the Bretton Woods agreement, the officially determined value of a country's currency is referred to as its
A. par value. B. value-to-weight ratio. C. GDP. D. exchange rate.