A government may be able to reduce the international value of its currency by:
A. selling its currency in the foreign exchange market.
B. buying its currency in the foreign exchange market.
C. selling foreign currencies in the foreign exchange market.
D. increasing its domestic interest rates.
A. selling its currency in the foreign exchange market.
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Limits on the flow of foreign exchange and financial investment across countries are called
A) currency restrictions. B) credit constraints. C) fixed exchange rates. D) capital controls.
Suppose you borrow $1,000 at 8% for 2 years. If the interest is compounded annually, how much money will you owe at the end of those 2 years?
A. $1,080.00 B. $1,160.00 C. $1,166.40 D. $1,345.60
In Probability of Injury (x-axis) versus Wage (y-axis) space, isoprofit curves slope upward because
A. workers are willing to accept a lower wage in exchange for a riskier work environment. B. profits are constant with respect to risk. C. the firm does not like to pay higher wages. D. profits increase with the number of workers the firm employs. E. in order to keep profits constant, a higher wage must be offset by the firm saving money by not investing as much in preventing on-the-job injuries.
If the demand for a product decreases by 16 percent, the supply elasticity is 1.2, and demand elasticity is 0.80, then the equilibrium price will decrease by 6 percent.
Answer the following statement true (T) or false (F)