In an open economy, we know that individuals must choose between which of the following?
A) domestic bonds and foreign currency
B) foreign goods and domestic currency
C) domestic and foreign bonds
D) domestic goods and foreign currency
E) none of the above
C
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The most a monopolist can sell at any given price is:
A. the amount he alone can supply the market with. B. the amount demanders are willing to buy at that price. C. constrained by the availability of inputs. D. less than if it were a perfectly competitive market.
Which of the following is consistent with an active approach to policy?
a. The natural rate of unemployment being uncertain b. Wages and prices being relatively quick to adjust c. The short-run aggregate supply curve being slow to shift in the presence of a recessionary gap d. The size of the multiplier being irrelevant e. The aggregate demand curve being slow to shift in the presence of a recessionary gap
Answer the following statement(s) true (T) or false (F)
1. In the United States, tradeable effluent markets are far less common than they are in other countries. 2. A watershed refers to a hydrologically defined land area that drains into a specific water body. 3. The use of watershed-based NPDES permits allows for permitting multiple point sources within a single watershed. 4. According to the textbook application, efforts to restore the Chesapeake Bay have been markedly successful. 5. The presidential Executive Order that is dedicated to the restoration of the Chesapeake Bay proposes a strictly command-and-control approach to restore and protect this natural resource.
Chelsea wants to start her own Christmas ornament business. She can purchase a suitable factory that costs $100,000 . Chelsea currently has $150,000 in the bank earning 3 percent interest per year. Suppose Chelsea purchases the factory using $50,000 of her own money and $50,000 borrowed from a bank at an interest rate of 6 percent. What is Chelsea's annual opportunity cost of purchasing the
factory? a. $2,000 b. $3,000 c. $4,500 d. $5,000