Which of the following could be responsible for the depreciation of a country's currency?
A. The country expands its tourist industry.
B. The country defaults on bonds held by foreigners.
C. The country experiences a sudden drop in the rate of inflation while other nations do not.
D. Speculators anticipate economic growth in that nation.
Answer: B
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Industrial machinery is an example of
a. a factor of production that in the past was an output from the production process. b. physical capital. c. something that influences productivity. d. All of the above are correct.
A headline reads "Gasoline Prices Are Higher." A likely explanation for this event would be a(n):
a. Decrease in the supply of gasoline and an increase in the demand for gasoline b. Increase in the supply of gasoline and a decrease in the demand for gasoline c. Increase in the demand for and the supply of gasoline d. Decrease in the demand for and the supply of gasoline
For which of the following will the law of one price hold best?
A) shirt B) butter C) gold D) milk
In 2008, interest rates on Treasury securities fell even though most other interest rates were rising.
Answer the following statement true (T) or false (F)