Easy monetary policy will ________ net exports as a result of a ________ currency.
A. increase; stronger
B. decrease; stronger
C. decrease; weaker
D. increase; weaker
Answer: D
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A debit card is
A) money because it is a means of payment. B) not money but is used to transfer bank deposits which are money. C) money because it is generally accepted as a means of payment. D) not money because it is not officially issued by the government. E) part of the M2 money supply but not part of the M1 money supply.
Which of the following is a reason behind low standards of living in developing countries?
a. High human and physical capital per worker b. Low human and physical capital per worker c. Low birth rates d. High tax rates e. Low public expenditure
Suppose in the market for used cars, buyers would be willing to pay $9,000 for a car in good condition, while buyers would have to incur a cost of $3,500 to repair a car in poor condition. Assume a risk-averse buyer is aware that some of the cars are lemons, but is uninformed about the probability of a car being in good condition or otherwise. What price would this buyer, seeking only to minimize
risk, be willing to pay for a car? a. $3,925 b. $5,500 c. $7,775 d. $5,850
A decrease in the dollar price of foreign currency would cause
a. the nation's imports to increase and exports to decline. b. the nation's exports to increase and imports to decline. c. both imports and exports to decline. d. both imports and exports to rise.