Although financial capital is relatively mobile as an input, it is subject to a "home bias" in which people prefer to invest within their own country.
Answer the following statement true (T) or false (F)
True
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One way to solve the problems caused by information asymmetry is:
A. surfing. B. signaling. C. proofing. D. All of these are solutions to information asymmetry.
Table 6.1Refer to Table 6.1. When quantity = 3, this market is ________ because ________.
A. inefficient; willingness to pay > marginal cost B. inefficient; willingness to pay < marginal cost C. efficient; willingness to pay = marginal cost D. producing too much consumer surplus; willingness to pay > marginal cost
How is the quantity theory of money different from the quantity equation and why must the quantity equation always be true?
What will be an ideal response?
The relative price of goods in two countries is known as the ________
A) nominal exchange rate B) real exchange rate C) domestic price level D) real interest rate