If U.S. interest rates are rise relative to foreign interest rates, in the foreign exchange market the demand for U.S. dollars will decrease
Indicate whether the statement is true or false
FALSE
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Can unionization in an industry adversely affect productivity? Explain your answer
What will be an ideal response?
The uncertainty about the return an asset will earn is
A) liquidity. B) risk. C) time to maturity. D) stochastic dominance.
If velocity were constant, as assumed by the pre-Keynesian version of the quantity theory, then a 10% change in the money supply would cause
A) a proportionate change in prices. B) a proportionate change in output. C) the sum of proportionate change in P and Y equals 10%. D) the net difference of proportionate change in P and Y equals 10%.
Prospect theory is based on behavioral economists understanding of how people:
A. React to good things (or gains) and bad (or losses) B. Make predictions about their future income C. Search for job-prospects or business prospects D. Behave under stressful conditions