Direct exchange rate intervention:
A. gives government greater power over exchange rates than the market.
B. has no effect on exchange rates.
C. gives government the ability to fix exchange rates at any level they choose.
D. gives government limited control over exchange rates.
Answer: D
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Answer the following statement true (T) or false (F)
When an American college student in Davis, California spends $200 on a pair of Louis Vuitton jeans (a famous French brand), U.S. consumption ________, U.S. net exports ________, and U.S. GDP ________
A) does not change; increases by $200; increases by $200 B) increases by $200; decreases by $200; does not change C) increases by $200; does not change; increases by $200 D) does not change; does not change; does not change E) does not change; decreases by $200; decreases by $200
If government regulations make a certain job less dangerous, then we'd expect that the supply of labor for that job would
a. increase, which by itself would raise the wage for that job. b. increase, which by itself would reduce the wage for that job. c. decrease, which by itself would raise the wage for that job. d. decrease, which by itself would reduce the wage for that job.
Export intensity, the percentage of total revenues coming from exports, is not always correlated with company size.
a. true b. false