Refer to the information provided in Table 20.3 below to answer the question(s) that follow. Table 20.3
Refer to Table 20.3. If the exchange rate is $1 = 1 euro, then
A. the United States will import both raspberries and chocolate.
B. the United States will import chocolate and Belgium will import raspberries.
C. Belgium will import both raspberries and chocolate.
D. Belgium will import chocolate.
Answer: D
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Four stores have a problem with theft and security is a public good. Let S stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 200 - 2S. Patrols cost $20 per hour. If each store provided security independently, how much would each store provide?
A. 90 person-hours of patrols per week B. 100 person-hours of patrols per week C. 92.5 person-hours of patrols per week D. 97.5 person-hours of patrols per week
If the government issues new government bonds to finance a budget deficit, the real interest rate in financial markets will ________ and investment spending will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
According to the text, over 40 percent of member nations of the International Monetary Fund have
A) a fixed exchange rate. B) no separate legal currency. C) an independently floating exchange rate. D) a managed floating exchange rate.
Describe the idea behind the cap-and-trade program for improving environmental quality. Explain how supply and demand determine the price for pollution rights in this case
Please provide the best answer for the statement.