Balance of payments issues are related to the relative value of different countries' currencies and the flow of goods, services, and financial assets among countries. The rate at which one country's currency can be traded for another is called:
A) the trade balance.
B) capital inflows.
C) capital outflows.
D) the exchange rate.
D
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Which of the following is likely to lead to a partial recovery after a recession?
A) A decrease in money supply B) A decrease in tax rates C) A decrease in government spending D) An increase in the interest rate
When the U.S. dollar drops in value exports tend to:
A. go up, which decreases the trade deficit. B. fall, which increases the trade deficit. C. go up, which increases the trade deficit. D. fall, which decreases the trade deficit.
Given full-employment output = $2,800, equilibrium output = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of national output?
A. $300 decrease in taxes. B. $75 increase in government spending. C. $75 decrease in taxes. D. $300 increase in government spending.
Ed's Electronic Devices has an asset beta of 1.2. The market rate of return is 12% and the risk-free rate of return is 2%. Ed is considering updating his production technology
If he does so, he expects the cash streams indicated in the table below. Given this information, should Ed update his production technology? Year Cashflow Present Value 0 -$100,000 1 $25,000 2 $25,000 3 $25,000 4 $25,000 5 $25,000 6 $25,000 Total