The problem of currency mismatch of net external wealth can be mitigated by:
A) ensuring the creditor countries always denominate loans in U.S. dollars.
B) promoting internal financial markets where foreign securities can be traded.
C) restricting borrowing yet encouraging lending.
D) piling up large stocks of foreign currency assets in central bank reserves and sovereign wealth funds.
Ans: D) piling up large stocks of foreign currency assets in central bank reserves and sovereign wealth funds.
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If you borrow $5,000 from your bank to purchase shares of Twitter from your cousin Vinny, this is an example of obtaining ________ financing and purchasing the stock in a ________ market
A) direct; primary B) indirect; secondary C) direct; secondary D) indirect; primary
Currently, it is illegal to import prescription drugs into the United States despite the fact that U.S. consumers could buy drugs from Canada at lower prices than those available in the United States. What set of cost curves is most consistent with the price difference between the United States and Canada?
A. Producing a drug has a low fixed cost with a relatively high marginal cost. B. Producing a drug has a high fixed cost with a relatively low marginal cost. C. Producing a drug has a high and constant marginal cost. D. Producing a drug has a low fixed cost and a rising marginal cost.
Monetarists argue that the demand for money is unresponsive to interest rates, i.e. depends on income only, produces a
A) vertical LM function. B) horizontal LM function. C) vertical IS function. D) horizontal IS function.
Couples marrying at younger ages in colonial America than in Europe contributed to the relatively higher birth rates
Indicate whether the statement is true or false