Ilona’s country has five factories. In contrast, Hassan’s country has 100 factories. How will productivity in each country be impacted if each country builds two new factories?
a. Both Ilona’s and Hassan’s countries will experience a major increase in productivity.
b. Hassan’s country will experience a relatively large increase in productivity, while Ilona’s country will experience a relatively small increase in productivity.
c. Ilona’s country will experience a relatively large increase in productivity, while Hassan’s country will experience a relatively small increase in productivity.
d. Neither Ilona’s nor Hassan’s country will experience an increase in productivity.
c. Ilona’s country will experience a relatively large increase in productivity, while Hassan’s country will experience a relatively small increase in productivity.
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Exporting nations often agree to voluntary export restraints in an attempt to
A) decrease inflation. B) increase global welfare. C) avoid more restrictive trade policies. D) employ more workers in the importing nation.
Indirect finance refers to the flow of funds from savers to borrowers through financial intermediaries
Indicate whether the statement is true or false
In August, the Canadian wheat harvest is in and exports to wheat-consuming nations begin in earnest. We would expect to see the Canadian rate of exchange
a. increase because there is an increase in the demand for Canadian wheat, which means an increase in the demand for Canadian dollars b. decrease because there is an increase in the demand for Canadian wheat, which means an increase in the demand for Canadian dollars c. increase because there is an increase in the demand for Canadian wheat, which means an increase in the supply of Canadian dollars d. increase because there is a decrease in the demand for Canadian wheat, which means an increase in the supply of Canadian dollars e. remains fixed because the exports create a counterbalance of imports
GNI per capita can be adjusted by purchasing power to account for differences in the cost of living.
a. true b. false