Foreign exchange rates refer to the:
A. Price at which purchases and sales of foreign goods take place
B. Rate of exchange of goods and services between two trading nations
C. Price of one nation's currency in terms of another nation's currency
D. Difference between exports and imports of a particular nation with another
C. Price of one nation's currency in terms of another nation's currency
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According to proponents of the interest-rate-based monetary policy transmission mechanism, any increase in the money supply
A) causes velocity to increase, and so in the short run nominal Gross Domestic Product (GDP) must increase. B) will increase Gross Domestic Product (GDP) only if interest rates fall and investment is sensitive to decreasing interest rates. C) is effective in increasing Gross Domestic Product (GDP) only if it causes an outward shift of the aggregate supply curve. D) will move the economy from the "liquidity trap" during times of recession if interest rates fall enough to stimulate private investment.
Refer to the scenario above. Jack and Jill will derive maximum utility if:
A) Jack tries to move the tree while Jill does not. B) Jill tries to move the tree while jack does not. C) both of them try to move the tree. D) neither of them tries to move the tree.
A long term goal of the NAFTA member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility
Indicate whether the statement is true or false
If a production possibilities frontier is a downward sloping straight line, it
A. shows that there are no trade-offs in the production process. B. shows that resources are not efficiently allocated C. shows that production on the frontier implies that it is not possible to produce more of anything without producing less of something else. D. shows that resources are unemployed.