Which of the following statements is true?
A. If foreign interest rates increase, the domestic interest rate remaining unchanged, there will be international financial repositioning toward domestic-currency assets and the domestic currency will appreciate.
B. If the domestic interest rate rises, there will be international financial repositioning toward domestic-currency assets, thereby causing the domestic currency to appreciate.
C. If the expected future spot exchange rate value of the foreign currency decreases, there will be international financial repositioning toward foreign-currency assets, thereby causing the domestic currency to depreciate.
D. If the expected future spot dollar per euro exchange rate increases, there will be international financial repositioning toward the dollar-denominated assets thereby causing the euro to depreciate.
Answer: B
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A perfectly competitive firm can maximize profits by producing the quantity at which MR exceeds MC by the greatest amount
a. True b. False Indicate whether the statement is true or false
What is an infant industry?
(A) An industry that has tariff protection. (B) An inefficient but necessary industry. (C) An industry making products for infants and children. (D) A young or developing industry.
Refer to the information provided in Figure 26.1 below to answer the question(s) that follow.
Figure 26.1Refer to Figure 26.1. Between the output levels of $1,000 billion and $1,500 billion, the relationship between the price level and output is
A. positive. B. constant. C. negative. D. indeterminate.
Refer to the table below. If the world price is $5.00, there will be:
Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qdd) and Column 3 is the quantity supplied domestically (Qsd).
A. A domestic surplus of 100 units that will be exported
B. A domestic shortage of 100 units that will be imported
C. A domestic surplus of 200 units that will be exported
D. Neither a domestic surplus nor a shortage