If a firm is due to be paid in euros in two months, to hedge against exchange-rate risk the firm should ________ foreign exchange futures ________
A) sell; short
B) buy; long
C) sell; long
D) buy; short
A
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A supply schedule can be plotted on a graph to yield a supply curve.
Answer the following statement true (T) or false (F)
The devaluation of a currency develops once ________
A) an increase in the value of a country's currency develops B) a monetary authority runs out of international reserves C) the level of domestic income falls D) an increase in the domestic price level develops
Use the above figure. This graph is known as
A) the Laffer curve. B) the short-run Phillips curve. C) the NAIRU relationship. D) the Keynesian curve.
If a subsidy is granted to perfectly competitive firms that provide external benefits to society, the firm's ________ curve will shift down and the industry ________ curve will shift to the right.
A. marginal benefit; supply B. marginal benefit; demand C. marginal cost; demand D. marginal cost; supply