If a country with high unemployment, a balance of payments deficit, and fixed exchange rates decides to abandon its fixed exchange rate and allow its exchange rate to float, which among the following will be a probable effect?
A. Its currency will appreciate, decreasing international competitiveness and leading to a worsening of the current account.
B. Its currency will depreciate, decreasing international competitiveness and leading to an improvement in the current account.
C. Its currency will appreciate, increasing international competitiveness and leading to an improvement in the current account.
D. Its currency will depreciate, increasing international competitiveness and leading to an improvement in the current account.
Answer: D
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In a multiple regression problem involving two independent variables, if b1 is computed to be +2.0, it means that:
A) the relationship between X1 and Y is significant. B) the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, holding X2 constant. C) the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, without regard to X2. D) the estimated average value of Y is 2 when X1 equals zero.
John Amaker owns orange groves and hires pickers for a two-week period as shown in Table 7-3.Table 7-3 Pickers Oranges Picked 1 1,000 2 2,000 3 3,000 4 3,900 5 4,700 6 5,400 7 6,000 8 6,200 9 6,000 In Table 7-3, negative returns set in with picker
A. 6. B. 7. C. 8. D. 9. E. There are no negative returns in this table.
Refer to the information provided in Figure 31.2 below to answer the question(s) that follow.
Figure 31.2Refer to Figure 31.2. An economy that chooses to be at Point B rather than Point A will achieve ________ in the future.
A. higher opportunity costs B. lower employment levels C. lower consumption levels D. a higher economic growth rate
The quantity demanded of a product increases as its price declines because the:
A. lower price results in an increase in supply. B. demand curve is downsloping. C. lower price shifts the demand curve rightward. D. lower price shifts the demand curve leftward.