In the spring of 2002, the Japanese Ministry of Finance intervened in the foreign exchange market by selling yen and purchasing dollars. Why? And why did the intervention fail?
What will be an ideal response?
The attempt was to try to bring about a depreciation of the yen relative to the dollar to boost Japanese export industries and help to stimulate a stagnant Japanese economy. The intervention failed because as the Ministry of Finance was selling yen, the Bank of Japan (Japan's central bank) in conducting monetary policy was buying them.
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A) known; economical B) both known and unknown; economical C) known; both economical and uneconomical D) both known and unknown; both economical and uneconomical
The standard economists use to assess whether an activity should be undertaken is
a. majority vote b. the marginal benefit assessment. c. the gold standard d. economic efficiency.
Net capital outflow equals
a. the value of domestic assets purchased by foreigners. b. the value of foreign assets purchased by domestic residents. c. the value of domestic assets purchased by foreigners - the value of foreign assets purchased by domestic residents. d. the value of foreign assets purchased by domestic residents - the value of domestic assets purchased by foreigners.
A radio ad conveys the hours a store is open. By doing this, the ad ______.
a. creates a more elastic demand curve. b. creates a demonstration effect c. communicates important information d. communicates misleading information