A country would tend to experience currency depreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world.
b. people in the foreign currency markets expect the value of the currency to rise in the near future.
c. the foreign demand for its exports decreases
d. none of the above.
d
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080Who should specialize in knitting scarves?
A. Natalia B. Alexandra C. Both Natalia and Alexandra D. Neither Natalia nor Alexandra
Which of the following will be counted as an investment expenditure in the measurement of GDP?
A) purchase of a tractor by a farmer from his neighbor B) purchase of preferred stock in ABC Corporation C) purchase of a newly built tractor by a college fraternity for hay rides at their charity fair D) purchase of an apartment in a newly-built building E) purchase of newly built computers by a municipal government
If a particular measure of real GDP consistently underestimates growth in real GDP, then the rate of inflation as measured by the GDP deflator
A) will be biased upward. B) will be biased downward. C) will be unbiased. D) cannot be calculated.
The Fed's objectives present it with a true dilemma when
a. there are demand shocks caused by shifts in money demand b. there are demand shocks caused by changes in spending c. there are negative supply shocks d. cyclical unemployment exists e. there is member bank opposition