Fixed exchange rates require the economic policies of countries linked by the exchange rate to be:
a. completely independent.
b. complementary to each other.
c. determined by the World Bank.
d. similar in nature.
e. determined by the International Monetary Fund.
d
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Consider a situation in which a factory emits high levels of air pollution and the factory is not liable for the damages its pollution causes. According to the Coase theorem, government action is ________ to achieve an ________ amount of pollution
A) necessary; equitable B) not necessary; equitable C) necessary; efficient D) not necessary; efficient.
Figure 36-1
Which of the graphs in Figure 36-1 best illustrates the behavior of exports and imports in relation to U.S. real GDP?
A. 1 B. 2 C. 3 D. 4
If financial intermediaries charge a higher rate of interest to lenders than they pay to borrowers, then
a. investing with borrowed funds involves a higher opportunity cost than investing with savings b. investing with saving involves a higher opportunity cost than investing with borrowed funds c. a firm is charged less interest to borrow than it can earn on savings d. the opportunity cost of investing with borrowed funds equals the opportunity cost of investing with savings e. a firm does not consider the market rate of interest when it makes investment decisions
The law of demand states that other things equal:
What will be an ideal response?