If speculators with Swiss francs believed the yen was going to depreciate against the dollar, they would most likely: =
A. Purchase euros.
B. Not participate in foreign exchange markets because of the volatility.
C. Purchase dollars.
D. Purchase yen.
Answer: C
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Which of the following would likely be the most effective possible solution when a scarce resource is subject to the tragedy of the commons?
A) offer subsidies to the users of the commons B) restrict access to the commons through community norms and laws C) persuade people to use less of the scarce resource through an advertising campaign D) force people to move a great distance away from the commons
We define a monopoly as a market with
A) one supplier and no barriers to entry. B) one supplier with barriers to entry. C) many suppliers with no barriers to entry. D) many suppliers with barriers to entry. E) a few suppliers and barriers to entry.
The welfare impact of a preferential trade agreement depends on the difference between the amount of new trade that takes place because of the agreement and the change in international trade patterns that arises because of it
Indicate whether the statement is true or false
Tobin's model of the speculative demand for money shows that people hold money as a ________ as a way of reducing ________
A) medium of exchange; transaction costs B) medium of exchange; risk C) store of wealth; transaction costs D) store of wealth; risk