________ in the domestic interest rate causes the demand for domestic assets to ________ and the domestic currency to appreciate, everything else held constant
A) An increase; increase
B) An increase; decrease
C) A decrease; increase
D) A decrease; decrease
A
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Every international transaction automatically enters the balance of payments
A) once either as a credit or as a debit. B) twice, once as a credit and once as a debit. C) once as a credit. D) twice, both times as debit. E) the times, once as a credit, onces as a debit, and once as an exchange.
Price elasticity of demand basically measures
A) the reliability of a product. B) the responsiveness of consumers to price changes. C) the variability of price changes. D) the percentage change in market price as a result of a change in demand.
When you invest in a mutual fund
(A) Your money is invested in a variety of insurance policies. (B) You are guaranteed a fixed return on your investment. (C) Your money is invested in a variety of stocks and bonds. (D) You have easier access to your money than in a savings account.
Which of the following is INCORRECT regarding monopoly and profits?
A. The mere existence of a monopoly does not guarantee high profits. B. A monopolist will never experience economic losses. C. The monopolist reaches profit-maximizing output by trial and error. D. Numerous monopolies have gone bankrupt.