An increase in perceived risk of foreign assets increased both the financial account surplus and current account deficit in the United States during the late 1990s
Indicate whether the statement is true or false
TRUE
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Refer to Figure 19-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $4 per pound in the figure above, then which of the following is true?
A) The Bank of England would have to buy 0.7 million pounds per day with dollars. B) The par exchange rate is below the equilibrium rate, causing a shortage of domestic currency. C) There is a shortage of pounds equal to 0.7 million. D) The Bank of England would have to sell 0.7 million pounds per day in exchange for dollars.
The limits of the terms of trade between two countries are determined by those countries' opportunity costs of production
a. True b. False
Answer the question on the basis of the following information: Harry owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage
rate, the shop can now provide a total of 42 haircuts per day. Refer to the given information. The MP of the second barber is: A. $240. B. $108. C. 18 haircuts. D. 42 haircuts.
The change in capital stock in a period is equal to
A. the ratio of the amount of the capital at the beginning of the period to the amount of depreciation. B. the amount of the capital at the beginning of the period minus net investment. C. the amount of the capital stock at the beginning of the period plus gross investment minus depreciation. D. the amount of the capital at the beginning of the period plus gross investment.