When a country has flexible exchange rates the:
a. Reserves account must equal zero.
b. Reserves account must be positive.
c. Reserves account must be negative.
d. Current account must equal minus the reserves account.
e. Reserves account can be positive or negative.
.A
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Faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists
A) shrug their shoulders and ignore the issue. B) agree that trade theory is thus proven hollow and internally inconsistent. C) argue that U.S. consumers should not consume lettuce. D) argue that the poor conditions and low wages are actually improvements for the Mexican workers, and may be cited as gains-from-trade. E) argue that Mexico's generally high overall productivity offsets these conditions.
Which of the following securities has the lowest interest rate?
A) junk bonds B) U.S. Treasury bonds C) investment-grade bonds D) corporate Baa bonds
If the workers of a firm successfully negotiate an increase in wages, which of the following is most likely to happen?
A) The demand curve for the product the firm produces shifts rightward. B) The demand curve for the product the firm produces shifts leftward. C) The supply curve of the product the firm produces shifts rightward. D) The supply curve of the product the firm produces shifts leftward.
A change in the price of a competing product will shift demand.
a. true b. false