Which of the following is likely to decrease the exchange rate of Yen to euros (¥/€)?
A) an increase in investment opportunities in the U.S.
B) a decrease in investment opportunities in the eurozone
C) a decrease in demand for European goods in Japan
D) an increase in investment opportunities in the eurozone
D
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The figure above shows Sam's budget line. Which of the following combinations of gasoline and coffee are not available to Sam?
A) 40 gallons of gasoline and 0 pounds of coffee B) 32 gallons of gasoline and 4 pounds of coffee C) 8 gallons of gasoline and 8 pounds of coffee D) 16 gallons of gasoline and 16 pounds of coffee
A call option is in the money if the futures price is greater than the strike price.
a. true b. false
You are the manager of a supermarket, and you know that the income elasticity of peanut butter is exactly ?0.7. Due to the economic recession, you expect incomes to drop by 15 percent next year. How should you adjust your purchase of peanut butter?
A. Buy 9.8 percent less peanut butter. B. Buy 10.5 percent more peanut butter. C. Buy 6.2 percent less peanut butter. D. Buy 2.14 percent more peanut butter.
The following is budget information for a hypothetical economy. All data are in billions of dollars.YearGovernment SpendingTax RevenuesGDP1$800$825$4,00028508504,20039008754,35049509004,50051,0009254,600Refer to the above data. In which year is there a budget surplus?
A. Year 5 B. Year 4 C. Year 1 D. Year 2