In the open-economy macroeconomic model, net capital outflow links the markets for loanable funds and foreign-currency exchange
a. True
b. False
Indicate whether the statement is true or false
True
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The individual with the highest valuation of the good will win in which of the following auctions?
A) English Auction B) Dutch Auction C) Sealed Bid Auction D) All of the above.
Three hurricanes, combined with the already high real-estate prices, have made people reconsider whether to retire to Florida. The cost of homeownership has increased due to stricter building codes. The influx of retirees is expected to rise. Which of the following factors is tending to move the demand curve for Florida housing to the right?
A. The aging of the baby boomers, increasing the number of people who are retiring B. The current high construction costs C. The increase in the cost of insurance D. The already high real-estate prices
A discount bond is a bond
A) with no coupon payments. B) where the price of the bond is greater than its face value. C) where the interest rate is zero. D) where the face value is zero. E) that never matures.
What effect will an increased demand for housing in the suburbs of a major city have on the cost of vegetable farming in the suburbs?
A) No effect, since one cannot grow vegetables on land on which housing has been constructed. B) The cost will decline because only very fertile land will now be used for growing vegetables. C) The cost will rise because it will become more expensive to grow vegetables. D) The cost won't change, because there has been no change in physical conditions. E) We cannot predict unless we know what has happened to the demand for vegetables.