If bond prices fall,
A) interest rates rise, which in turn, discourage investment.
B) interest rates fall, which in turn, discourage investment.
C) interest rates rise, which in turn, stimulate investment.
D) interest rates fall, which in turn, stimulate investment.
Ans: A) interest rates rise, which in turn, discourage investment.
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Compare the macroeconomic performances in the 1990s of the following countries under the following exchange-rate regimes: floating exchange rates, Mexico and Brazil; capital control, China and Malaysia; and currency boards, Estonia and Hong Kong;
dollarization, Argentina.
Microsoft found that instead of producing a dvd player and a gaming system separately, it is cheaper to incorporate dvd playing capabilities in their new version of the gaming system. Microsoft is taking advantage of
a. Economies of Scale b. Learning curve c. Economies of Scope d. Decreasing marginal costs
The MR = MC profit maximization rule applies:
A. only to monopolies. B. only to purely competitive firms. C. only when the firm is a "price taker." D. to firms in all types of industries.
The international investment position is defined as
A) the total of all domestic assets owned by foreigners minus the total of all foreign assets owned by residents of the home country. B) the total of all domestic assets owned by foreigners plus the total of all foreign assets owned by residents of the home country. C) the total of all foreign assets owned by residents of the home country minus the total of all domestic assets owned by foreigners. D) the total of all foreign assets owned by residents of the home country times the total of all domestic assets owned by foreigners.