Purchasing power parity does a ________ job in explaining movements in nominal exchange rates in the short run and does a ________ job in explaining movements in nominal exchange rates in the long run
A) reasonable; reasonable
B) reasonable; poor
C) poor; reasonable
D) poor; poor
C
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Which of the following is an example of risk diversification?
A) an individual purchasing only IBM stock B) an insurance company writing earthquake insurance only for the Los Angeles area C) an individual investing all of her savings in a single, new firm D) a lumber mill purchasing trees from various forests across the western United States
The shared values and trust that promote cooperation in the economy are referred to as:
a. academic capital. b. social capital. c. human capital. d. physical capital.
The three elements of a game are:
A. the model, the graph, and the costs. B. the firm, the consumers, and the profit. C. the players, the strategies, and the payoffs. D. the costs, the revenue, and the profit.
The lower the exchange rate, the cheaper are foreign-produced goods and services
Indicate whether the statement is true or false