The actions taken by arbitrageurs in the foreign exchange markets
a. destabilize foreign exchange markets
b. are highly risky
c. have no effect on exchange rates
d. help assure that exchange rates are equalized across all markets
e. are the same as those undertaken by speculators
D
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In 2012, the U.S. federal government budget had a budget deficit. If there is no Ricardo-Barro effect, this deficit ________ the demand for loanable funds and ________ the real interest rate
A) decreased; lowered B) did not change; did not change C) increased; raised D) decreased; raised E) increased; lowered
What are the outcomes of the following games, assuming the max-min criteria is used?
What will be an ideal response?
Alex's production is worth $60 and Harry's is worth $40 . They decide to form a coalition and produce together such that their combined production is worth $135 . What is the maximum benefit Alex can earn while ensuring Harry does not leave the coalition?
a. $75 b. $96 c. $77.5 d. $94
To determine real GDP, divide nominal GDP by the
a. current values of goods and services. b. final goods and services. c. GDP deflator. d. value of GDP.