An exchange rate that has an officially fixed value greater than its fundamental or market equilibrium value is called a(n) ________ exchange rate.
A. undervalued
B. overvalued
C. depreciated
D. devalued
Answer: B
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If the economy automatically tends toward full employment, then government stabilization policy
A. must be constantly in force. B. will be necessary only in recessions. C. will be necessary only in inflationary periods. D. will not be necessary.
Use the following graph to answer the next question.
If Canadian investors buy more U.S. financial and real assets, ________.
A. the demand curve will shift right B. the demand curve will shift left C. the supply curve will shift right D. the supply curve will shift left
Which of the following is characteristic of a perfectly competitive market?
a. There is free entry into and exit from the market. b. Individual firms can exert a perceptible influence on the market price. c. The firms in the market produce differentiated products. d. All of these are true.
For most Third World countries, the key source of capital accumulation is _____
a. internal debt b. foreign direct investment c. domestic business spending d. domestic saving e. foreign aid