If an international currency speculator expects that country A will soon be forced to devalue its currency, the speculator will
A) buy as much of that currency as possible.
B) sell all of his holdings of that currency.
C) not be concerned because the devaluation will affect only the domestic prices of goods within country A's borders, not international prices.
D) not be concerned because only a revaluation will affect his or her profits.
B
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Classifying a good as excludable means
A) that anyone who does not pay for the good cannot consume it. B) that consumption of the good generates no externalities. C) that a producer with patent or copyright protection can exclude any other producer from selling the product. D) that someone can be barred from consuming the good based on race, ethnicity, or some other irrelevant characteristic.
At the Punjab Bakery, two workers can decorate 14 cakes in an hour and three workers can decorate 18 cakes in an hour. The marginal product of the third worker is
A) 18 cakes, and the average product for three workers is 6 cakes. B) 9 cakes and is equal to the average product. C) 4 cakes, and the average product for three workers is 6 cakes. D) 32 cakes, and the average product for three workers is 9 cakes. E) 6 cakes, and the average product for three workers is also 6 cakes.
Which statement best describes the current account balance in the short run?
A) Monetary expansion lowers the current account balance. B) Monetary expansion keeps the current account balance the same. C) Fiscal expansion increases the current account balance. D) Fiscal expansion keeps the current account balance the same. E) Monetary expansion increases the current account balance.
When the potential money multiplier is 7, a $3,000 increase in demand deposits could support the creation of ______ new demand deposits
a. $3,000 b. $9,000 c. $15,000 d. $18,000 e. $21,000