Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen
A) decrease; depreciates B) increase; depreciates
C) increase; appreciates D) decrease; appreciates
C
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The key to a successful positive signal is that:
A. it is costly to fake. B. it is hidden information. C. it builds trust between the principal and the agent. D. All of these statements are true.
Proponents of strategic trade policy contend that:
a. government should tax domestic firms to generate greater revenues. b. government should encourage imports to prevent monopoly in the domestic market. c. government should provide subsidies to domestic firms with decreasing costs. d. government should discourage domestic firms with decreasing costs from continuing production. e. government should tax domestic import competing firms.
If the supply of a good is relatively inelastic, this means that the quantity supplied of the good is
a. not very sensitive to the price of the good. b. highly sensitive to the price of the good. c. unrelated to the price of the good. d. none of the above.
In imperfectly competitive markets, increasing production will decrease the price of all units sold. This concept is known as the
a. income effect. b. cost effect. c. output effect. d. price effect.