A firm produces construction equipment, some of which it sells to domestic businesses and some of which it exports. Which of the following effects of capital flight in the country where it produces would likely increase the quantity of equipment it sells?
a. both what happens to the interest rate and what happens to the exchange rate
b. what happens to the interest rate but not what happens to the exchange rate
c. what happens to the exchange rate but not what happens to the interest rate
d. neither what happens to the interest rate nor what happens to the interest rate.
c
You might also like to view...
The Constitution contains a provision that states that no laws shall be passed "impairing the obligation of contracts." This provision
(a) meant that the English common law was legislated for the new republic. (b) was an innovation by the authors of the Constitution and not found in British law. (c) was only a minor aspect of developing the new idea of government by law and not by men. (d) was a controversial provision and opposed by many delegates.
In order to have ________ distribution of final products to households, free and open markets are essential.
A. a fair B. an equitable C. an efficient D. All of the above are correct.
If a person receives a consumer’s surplus from the purchase of a good, it must be that
A. the amount that the person paid minus the amount that this person values that good is greater than zero. B. the amount that the person values the good minus the amount that this person paid for that good is greater than zero. C. the value is negative because consumers have diminishing marginal utility. D. result is based solely on the supply of the good.
Explain how redistributing income creates a deadweight loss
What will be an ideal response?