The terms of trade:
A. show the ratio at which nations will exchange two goods.
B. show how the gains from trade can be equally shared.
C. show the value of one nation's currency in terms of another nation's currency.
D. compare the volume of a nation's exports and imports.
A. show the ratio at which nations will exchange two goods.
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The __________ market liquidity is, the __________ the bid-asked spread will be
A) higher; wider B) lower; narrower C) higher; narrower D) None of the above.
Compare and contrast the four market models in terms of the profit-maximizing output level for each, the shut-down rule for each, the probability of long-run economic profits being earned, and their social desirability
As prices rise, consumers and businesses will want to hold larger money balances. This will lead to
a. a reduction in the demand for resources and reduced resource prices. b. an increase in the amount of goods and services demanded due to the real balance effect. c. an increase in exports due to the international substitution effect. d. a reduction in the supply of loanable funds and an increase in the interest rate.
At the beginning of 2000, the CPI was 159.3. At the beginning of 2001, it was 177.6. What was the approximate rate of inflation in 2000?
A. 18.3 percent. B. 11.5 percent. C. 10.0 percent. D. 7.6 percent.