A currency appreciation should
a. reduce net exports and therefore increase aggregate demand.
b. raise net exports and therefore decrease aggregate demand.
c. reduce net exports and therefore decrease aggregate demand.
d. raise net exports and therefore increase aggregate demand.
c
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If an economy has a flexible exchange rate and it chooses to issue $10 million in bonds, what will happen according to the Monetary approach?
A) It will have to allow its currency to appreciate. B) It will have to allow its currency to depreciate. C) It will have to decrease its foreign exchange reserves. D) It will have to increase its foreign exchange reserves.
How does U.S. output per capita compare with other industrial countries?
a. The United States ranks second accounting for 30 percent less output per capita than its predecessor Japan. b. The United States ranks at the top about 32% of the rest, excluding second ranked Canada. c. The United States ranks at the top and produces 10% more output per capita than all other nations. d. The United States ranks first in output and is 75% above the rest of the world.
If a monopolistically competitive firm is suffering losses in the short run:
A. the exit of competing firms will cause price to drop, but not affect the firm's demand curve. B. the exit of competing firms will shift the firm's demand to the right. C. the exit of competing firms will shift the firm's demand to the left. D. the exit of competing firms will cause price to rise, but not affect the firm's demand curve.
A type of investment fund that makes long-term investments in companies that are not publicly traded is called a
A) private equity fund. B) hedge fund. C) sovereign wealth fund. D) brokerage fund.