When the U.S. exchange rate rises, the trade deficit will:
A. be balanced by an increase in net exports.
B. remain unaffected.
C. usually rise, too.
D. usually fall.
Answer: C
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When conducting a study on success rates, which of the following would most likely be subject to survivor bias?
A. Of the 25 high schools located in Concordia County, this year's SAT scores were highest from students who attend Springdale High, the newest high school in the county. B. Of the 4 Starbucks locations that opened exactly 5 years ago in the same city, the location next to the concert arena has been the most financially successful. C. Of the 115 oceanfront hotels in Honolulu, only those with private beaches are able to charge more than $200 per night on average. D. Of the 75 oil exploration firms based in North Dakota, over half of those that recently filed for bankruptcy have been in business for 5 years or less.
Long time lags hamper the effectiveness of economic policy because: a. people don't want to wait for economic recovery
b. the longer unemployment lasts, the more intense inflation becomes. c. by the time the impact of a policy is felt, a new problem may have come along that requires a different policy, which may make the economic situation even worse. d. if inflation is allowed to continue for too long, it becomes immune to policy interference. e. if unemployment is allowed to continue for too long, it becomes immune to policy interference.
If interest rates in Canada rise above those in the rest of the world, then
a. the demand for Canadian dollars decreases b. exports from Canada to other countries increases c. imports into Canada from other countries decreases d. it raises Canada's exchange rate and this may result in a deficit on Canada's current account e. the balance of payments becomes negative
A bank is insolvent when
A) its liabilities exceed its assets. B) its assets exceed its liabilities. C) its capital exceeds its liabilities. D) its assets increase in value.