Under a fixed exchange rate system, if the dollar price of a Mexican peso is below its equilibrium level, the peso is said to be
A) depreciable.
B) undervalued.
C) overvalued.
D) appreciable.
E) none of the above
B
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The largest portion of any nation's current account is typically
A) imports and exports. B) gold sales. C) the sale of U.S. assets. D) foreign currency reserves.
When the government grants an inventor a patent
A. the patent holder has less incentive to invest in R&D because one successful invention removes the need to develop others. B. the protection of a current invention would increase spending on R&D. C. he has the exclusive right to make, sell or use his invention for 5 years. D. the patent holder is guaranteed a profit on his invention.
Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is an increase in wealth
What will be an ideal response?
Suppose an exhaustible resource can be sold only this period or in the next period. The marginal cost of extraction is constant and equal to $5. The current year price of the resource is $55, respectively. The interest rate is 10%. What is the minimum next year price required to make the sale of the resource profitable next year?
A) $55 B) $60 C) $65 D) $75