If speculators believe a currency is soon going to be revalued, they will increase their demand for that currency
Indicate whether the statement is true or false
TRUE
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Switzerland has experienced the lowest rate of price increases in the post World War II period. Consequently, Lucas would predict
A) small supply responses to variations in the inflation rate. B) large supply responses to variations in the inflation rate. C) small demand responses to variations in the inflation rate. D) large demand responses to variations in the inflation rate.
Which is not true of the interest rate?
A. It is the price at which funds can be rented. B. It is the price at which funds can be borrowed. C. It affects the marginal revenue product of capital. D. It does not affect the marginal revenue product of capital.
Which of the following is NOT an example of an increased standard of living?
A. Medical advances B. Lower life expectancy C. Telephones in every home D. Indoor plumbing
What is an export subsidy? Discuss some of the recent examples where such subsidies were controversial.
What will be an ideal response?