When arbitrage occurs across countries with a flexible exchange rate and when the bonds in each country are identical and there are no barriers to capital flows then the:
A. expected return on the bonds will be identical.
B. inflation rates in each country will be identical.
C. prices of the bonds will be identical.
D. interest rates on the bonds will be identical.
Answer: A
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Use the following table to answer the next question. All figures in the table below are in billions of dollars.RGDPAggregate Expenditures (Closed Economy - No International Trade)ExportsImports$400$440$50$60450480506050052050605505605060600600506065064050607006805060If this economy were closed to international trade, then the equilibrium real GDP would be ________ billion and the multiplier would be ________.
A. $600;5 B. $600;4 C. $500;5 D. $500;4
Phrases such as "unbreakable bottle," "non-shrink," "extra spicy," and "nonstick surface" are generally used in advertisements for products sold in perfectly competitive markets
a. True b. False Indicate whether the statement is true or false
Productive efficiency refers to:
A. the use of the least-cost method of production. B. the production of the product mix most wanted by society. C. the full employment of all available resources. D. production at some point inside of the production possibilities curve.
The GDP does not include the nonmarket economy. What is this, and why isn't it included?
What will be an ideal response?