The exchange rate that is established in the absence of foreign exchange market intervention by the government is known as a(n):
a. historical anachronism.
b. fixed exchange rate.
c. "dirty float" exchange rate.
d. unmanaged exchange rate.
e. free market equilibrium exchange rate.
e
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When a business is set up as a partnership, the owners of the business face limited liability
Indicate whether the statement is true or false
In economics, money is an example of capital
a. True b. False
Consider the production possibilities frontier displayed in the figure shown. Which points are efficient and attainable with existing resources?
A. Only point B.
B. Only point A.
C. Points A and D.
D. Points A, C, and D.
Assume that the multiplier effect for Mexico is 0.85 for an increase in spending by the U.S. government by $1 . Therefore, a $20 billion decrease in spending by the U.S. government results in:
a. a $23.5 billion increase in Mexican real GDP. b. a $133.3 billion decrease in Mexican real GDP. c. a $3 billion decrease in Mexican real GDP. d. a $17 billion decrease in Mexican real GDP. e. a $23.5 billion decrease in Mexican real GDP.