Monetary policy to stabilize the nation is less desirable whenever:
A) the nation is a net external debtor with liabilities denominated in foreign currency.
B) the nation is a net external creditor with assets denominated in foreign currency.
C) the central bank of the nation must also finance government deficits.
D) the government is unable to raise taxes sufficiently to lower its deficit.
Ans: A) the nation is a net external debtor with liabilities denominated in foreign currency.
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If the dollar appreciates relative to foreign currencies, then ________.
A. net exports of the U.S. will increase B. U.S. goods will look cheaper to foreign buyers C. foreign buyers will find U.S. goods become more expensive D. foreign goods will look more expensive to U.S. buyers
In which situation might a company NOT want to maximize profit?
A. A small business owner who sells a highly specialized product at a high price in order to compete with more established businesses in the area B. A family-owned company that has to decide between hiring a family member and hiring a highly-qualified external candidate C. A conglomerate with a highly streamlined supply chain who sells generic goods D. A corporation that has performed poorly in the last two quarters and is looking for new upper-management
When economists say the supply of a product has decreased, they mean that
a. the supply curve has shifted to the left. b. the product price has decreased, and as a consequence, suppliers are producing less of the product. c. producers are now willing to sell more of this product at each possible price. d. the supply curve has shifted to the right.
If the labor pool effect of globalization is weaker than the market expansion effect, then globalization will lead to a(n)________ in wages and a(n)________ in the number of workers hired.
A. decrease; increase B. increase; decrease C. decrease; decrease D. increase; increase