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What will be an ideal response?
Gain or loss generated by an investment
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A currency drain ________ the amount of bank reserves available to banks to make loans because ________
A) reduces; people are holding more money outside of the banks B) increases; people are holding less money outside of the banks C) reduces; people are holding less money outside of the banks D) reduces the monetary base; people are holding more money outside of the banks E) reduces; people are holding onto the money the banks could have borrowed from the Fed
Stock prices increase when expected future dividends ________, interest rates ________, and/or the risk premium ________.
A. decrease; decrease; increases B. increase; increase; decreases C. increase; decrease; decreases D. increase; increase; increases
Is the efficient markets hypothesis (EMH) responsible for the financial crisis of 2007- 2009?
What will be an ideal response?
Comparative advantage has mixed results when it comes to predicting a country's trade patterns. Which of the following is FALSE?
A) There are many potential products an economy might export that use the same comparative advantage. B) A large share of international trade is not based on comparative advantage. C) Comparative advantage has proven completely incapable of predicting trade. D) Comparative advantage is a dynamic concept, which means that the spread of technology, improvement in skills, and learning-by-doing may alter a country's comparative advantage over time.