Other things the same, a higher real exchange rate raises net exports
a. True
b. False
Indicate whether the statement is true or false
False
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Assume the auto market is initially in equilibrium with imports from Japan taking up a significant share of the market. Now assume a quota on imports of Japanese cars is established
What will occur at the initial equilibrium price to signal market participants regarding the change that has taken place? A) A surplus is created by an increase in supply. B) A surplus is created by a decrease in demand. C) A shortage is created by an increase in demand. D) A shortage is created by a decrease in supply.
If an investor holds two risky assets with a perfect negative correlation, then risk
A) falls to zero. B) is increased. C) is unaffected. D) is reduced by 50 percent.
The board of directors and the CEO
A) do not have a principal/agent relationship. B) are agent and principal, respectively. C) are principal and agent, respectively. D) are one in the same for small corporations.
Tax and spending policies affect aggregate demand only after some time elapses. Due to these time lags, fiscal policies end up getting based on
A. forecasts on the future state of the economy that are often inaccurate. B. forecasts on the present state of the economy that are often inaccurate. C. forecasts on the present state of the economy that are often accurate. D. all of these.