If speculators with Swiss francs believed the yen was going to depreciate against the dollar, they would most likely: =
A. Purchase euros.
B. Purchase dollars.
C. Not participate in foreign exchange markets because of the volatility.
D. Purchase yen.
Answer: B
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If the local airport decides to pay monetary compensation to the people on whom the airport's operation has imposed costs, it should compensate the people who
A) currently live nearby. B) currently live nearby and are also tenants. C) currently live nearby and also own the residences in which they live. D) owned nearby residences when the airport was built. E) owned nearby residences when the airport was built and who have not been able to sell their residences since the construction of the airport.
The link between corporate profits and investment
a) results from heavy reliance on internal financing b) indicates that cash flow is probably the key variable driving investment c) is the strongest empirical evidence of Tobin’s q d) explains the persistent drop in investment that occurred throughout the 1990s e) helps to keep investment fairly stable and countercyclical
On a Phillips curve diagram, a decrease in the rate of inflation, other things being equal, is represented by a(n):
A. upward shift of the Phillips curve. B. downward movement along Phillips curve. C. upward movement along the Phillips curve. D. downward shift of the Phillips curve.
A television station reports that the price of orange juice has declined but the quantity traded has increased. This situation could be caused by a(n):
A. Increased preference for orange juice among buyers B. Significant decrease in the harvest of oranges in the nation's orchards C. Improvement in the technology of producing orange juice D. Decrease in income, and orange juice is a normal good