A random walk model can more accurately predict exchange rates as compared to a sophisticated forecast
A) always.
B) for forecasts up to a year away.
C) for forecasts longer than a year away.
D) never.
E) because of the predictability of exchange rates.
B
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GDP is different than GNP in that
A) it accounts for net unilateral transfers. B) it does not account for indirect business taxes. C) it does not account for a country's production using services with foreign-owned capital. D) it accounts for depreciation. E) it is unhelpful when tracking national income.
If the long-run supply curve slopes upward, we know that this is
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which no input prices change as firms enter and exit the industry.
Any transaction that causes foreign exchange to leave a country is a
A. credit item in that country's balance of trade. B. debit item in that country's balance of payments. C. debit item in that country's balance of trade. D. credit item in that country's balance of payments.
Under the old Soviet communist system, government planning was substituted for the _________________.
Fill in the blank(s) with the appropriate word(s).