A result of an exchange rate depreciation, would occur as the spending patterns change in response to a change in the exchange rate.
a. expenditure switching from domestic to foreign products
b. expenditure switching from foreign to domestic products
c. expenditure switching from rural to urban producers
d. terms-of-trade deterioration
Ans: b. expenditure switching from foreign to domestic products
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Which of the following statements is/are correct?
I. Depository institution managers undertake riskier actions than they otherwise would because of the existence of deposit insurance. II. Because of the existence of deposit insurance, depositors in savings and loans and other banks have little incentive to investigate the financial stability of these institutions. A) I only B) II only C) both I and II D) neither I nor II
Which of the following is true?
A) Government intervention in the form of direct regulation does not involve any cost. B) The opportunity cost of government work is the tax imposed on the society. C) The allocation of time and talent of individuals to bureaucracy is an important cost of government. D) The larger the size of the bureaucracy, the higher is its efficiency.
When did the United States register its lowest unemployment rate?
A) in the 1920s B) in the economic boom of the 1990s C) in the Roaring Nineties (1890s) D) at the end of World War II
Unlike oligopoly, other market structures are such that
a. profits are usually low or nonexistent b. firms in those structures need not observe each other to make price and production decisions c. collusion within the structures is easy to accomplish because firms try to avoid competition d. prices tend toward a stable equilibrium e. there are more firms in every other structure