If an exporter wants to limit the effect of possible changes in the exchange rate on the value of her exports, then she can adopt a strategy known as
A. speculating.
B. floating.
C. appreciating.
D. hedging.
Answer: D
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Special interests have an incentive to become informed about a policy from which they could receive concentrated benefits
Since other voters remain rationally ignorant of the policy, the special interests will have considerable influence in the legislature. Will special interests receive everything they want from the legislature? Why or why not? How will the legislature determine what the special interests will receive?
The behavior of historical cost curves says nothing about the cost advantages or disadvantages of a single large firm
a. True b. False Indicate whether the statement is true or false
Refer to the above table about a free market of earbuds. When the quantity demanded is 3000 earbuds and the quantity supplied is 1500 earbuds, the market price of earbuds will likely
A. increase to $12. B. stay unchanged at $10. C. decrease to $8. D. decrease to $6.