Explain why in practice policy coordination is hard to achieve
What will be an ideal response?
One of reasons is that some countries might have to do more than others and may not want to do so. Second, countries have a strong incentive to promise to coordinate and then not deliver on that promise. Only when things are really bad, does coordination appear to take hold.
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A firm's ability to successfully practice price discrimination is greater
a. the more difficult it is to identify a customer's willingness to pay b. the more standardized the product offered by the firm c. the more difficult it is to transfer its product from person to person d. the more active the resale market is for their product e. in goods-producing markets than in service-producing markets
The unilateral transfers category in the current account refers to
a. money sent from one country to another without anything being exchanged in return b. money sent from one country to another with goods being exchanged in return c. goods sent from one country to another without anything being exchanged in return d. goods sent from one country to another with money being exchanged in return e. services sent from one country to another without anything being exchanged in return
Which of the following is the formula for calculating compound interest?
a. Compound interest = Future Value – Present Value b. Compound interest = Future Value + Present Value c. Compound interest = Future Value – Principal d. Compound interest = Present Value + Principal
Which of the following will be true when the foreign exchange market is in equilibrium and exports exceed imports?
a. The nation is experiencing a trade deficit. b. There will be a net inflow of capital. c. There will be a net outflow of capital. d. The exchange rate value of the domestic currency must rise.