A reduction in a country's rate of inflation should
A) increase its imports.
B) increase its exports.
C) lead to a negative trade balance.
D) lead to an outflow of SDRs.
B
You might also like to view...
The international reserves of the Federal Reserve System include its holdings of ________
A) Treasury securities B) discount loans to commercial banks C) foreign currency denominated assets D) U.S. dollars, British pounds and Euros
If the marginal rate of technical substitution for a cost minimizing firm is 10, and the wage rate for labor is $5, what is the rental rate for capital?
A) $0.5 B) $1 C) $2 D) $10
Fine-dining restaurants commonly provide statements in their menus such as, "A 20% gratuity will be added to all checks for parties of six or more patrons"
Given that this statement tends to raise the level of tips or gratuities left by other groups of diners, the statement is a good example of: A) the endowment effect. B) loss aversion. C) anchoring. D) none of the above
When we solve the firm's dual production problem (i.e., maximize output subject to a cost constraint) by the method of Lagrange multipliers, the optimal value of the Lagrange multiplier equals the:
A) marginal product per unit cost of each variable input. B) marginal product of capital. C) marginal product of labor. D) marginal cost of production.