Exports are:
A) positively related to the level of foreign income and negatively related to the exchange rate.
B) positively related to the level of foreign income and positively related to the exchange rate.
C) negatively related to the level of foreign income and negatively related to the exchange rate.
D) negatively related to the level of foreign income and positively related to the exchange rate.
A
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Explain why the current abatement levels for the two sources do not achieve cost effectiveness.
Suppose that there are only two stationary sources in a given air quality region. The first source has been in existence for several years, while the second source is new. The following functions represent marginal abatement costs (MAC) for each polluting source: MACEX = 10.0 + 0.7A EX, MACN = 9.2 + 0.5A N, whereAEX is the percentage abatement level for the existing source, and AN is the percentage abatement level for the new source. Assume that the aggregate abatement standard (i.e., for the region as a whole) is set at 40 percent and that the two firms’ current abatement levels areAEX = 10 and AN = 30.
In high inflation countries, inflation rates can exceed the rate of growth of money because:
A. money loses value quickly with inflation. B. high inflation increases the velocity of money. C. high rates of inflation increase the opportunity cost of holding money. D. all of the answers given are correct.
Laissez-faire economics was advocated by
A. both Keynes and the classicals. B. neither Keynes nor the classicals. C. the classicals, but not by Keynes. D. keynes, but not by the classicals.
The reason that domestic goals tend to dominate the political agenda is that:
A. inflation, unemployment, and growth affect a country's citizens more directly. B. trade deficits and exchange rates affect a country's citizens more directly. C. there is complete agreement on international goals, but domestic goals are uncertain. D. there are no real international goals.