Suppose a U.S. dollar exchanges for 0.8 euros, then each euro is worth
A. $1.25.
B. $1.20.
C. $0.80.
D. $0.20.
Answer: A
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Changes in the money supply can affect
A) expected inflation rates. B) actual inflation rates. C) the supply of loans. D) a and b E) a, b and c
The government allows ________ companies to operate as regulated monopolies.
A) airline B) mining C) utility D) timber E) telecommunications
"Leaning against the wind" is exemplified by a(n)
a. tax increase when there is a recession.
b. increase in the money supply when there is a recession.
c. decrease in government expenditures when there is a recession.
d. All of the above are correct.
If you advertise and your rival advertises, you each will earn $3 million in profits. If neither of you advertises, you will each earn $7 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $10 million and the non-advertising firm will earn $1 million. If you and your rival plan to be in business for 15 years, then the Nash equilibrium is for:
A. neither firm to advertise in early years, but to advertise in later years. B. you and your rival to advertise every year. C. each firm to advertise in early years, but not advertise in later years. D. you and your rival to not advertise in any year.