Speculators play an important role in a system of floating exchange rates because
A. to make a profit, they must buy a currency when its value is low and sell it when its value is high.
B. their purchases and sales lead to wild gyrations in exchange rates and thus increase instability.
C. they place additional risks on businesses that need to purchase and sell foreign currency.
D. All of the above are correct.
Answer: A
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A. increase by $1,000. B. decrease by $1,000. C. decrease by $4,000. D. increase by $4,000.
A decrease in the capital gains tax on income made from new capital investment will:
A. shift the demand for investment curve to the right. B. shift the supply of saving curve to the left. C. shift the demand for investment curve to the left. D. shift the supply of saving curve to the right.
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Answer the following statement(s) true (T) or false (F)
Organizing a successful firm in a market economy has become ________ over the last century
A) politically impossible B) less difficult C) legally impossible D) more difficult