Which of the following will be true when the foreign exchange market is in equilibrium and exports exceed imports?
a. The nation is experiencing a trade deficit.
b. There will be a net inflow of capital.
c. There will be a net outflow of capital.
d. The exchange rate value of the domestic currency must rise.
C
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Answer the following statement true (T) or false (F)
If an economy used gold as money, its money would be
a. commodity money, but not fiat money. b. fiat money, but not commodity money. c. both fiat and commodity money. d. functioning as a store of value and as a unit of account, but not as a medium of exchange.
Government issued privileges that allow the holder to discharge a specified amount of pollution into the air are known as ______.
a. transaction cost permits b. environmental protection agreements c. transferable pollution rights d. corrective pollution taxes
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Answer the following statement true (T) or false (F)