Firms in Thailand that had ________ while the baht was pegged to the dollar faced interest payments that were higher than they had planned once the Thai government abandoned the peg because the baht had been pegged ________ the equilibrium exchange
rate for the baht.
A) borrowed dollars; above B) borrowed baht; above
C) borrowed baht; below D) borrowed dollars; below
A
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Which of the following would be expected to decrease the demand for money in the U.S.?
A. The economy enters a boom period. B. Grocery stores begin to accept credit cards in payment. C. Political instability increases dramatically in developing nations. D. Households fear increasing computer glitches will severely limit their ability to use ATMs.
Given that the market wage rate is $50 and both the labor and the goods market are perfectly competitive, a profit-maximizing firm should hire an additional worker if:
A) the marginal product of the worker is 50 units. B) the value of marginal product of the worker is at least $50. C) the marginal product of the worker is less than 50 units. D) the value of marginal product of the worker is less than $50.
Who or what is responsible for the allocation of scarce resources into the production of most goods in the U.S.?
A) the American government B) the UN C) the Federal Reserve Bank D) markets and prices
The portion of deposits that banks need to hold at the Central Bank is:
(a) The required reserve ratio; (b) The discount rate; (c) The open market operation; (d) The interest rate.