Which of the following statements is NOT accurate?
A. Fundamental disequilibrium calls for a persistent series of official interventions.
B. An ongoing disequilibrium in the foreign exchange market can be sterilized by keeping official reserve holdings steady.
C. A fundamental disequilibrium can result in a one-way speculative gamble.
D. The value of the foreign currency declines if a country revalues its own currency.
Answer: B
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If the residents of a country receive income from their foreign investments, it is counted as a
A) credit in the current account. B) debit in the current account. C) credit in the capital account. D) debit in the capital account. E) debit in either the capital or current account, depending on the type of investment income.
In the table at right, the marginal product of the second worker is
A. 98
B. 38
C. 68
D. It cannot be determined
Demand for pork (a normal good) will shift to the left if consumer income in China decreases.
a. true b. false
Exhibit 10-1 A monopolistic competitive firm
If all firms in the industry are the same as the monopolistic competitive firm shown in this Exhibit 10-1, firms in the long run will:
A. leave the industry. B. earn positive economic profits. C. experience less competition because firms will exit the industry. D. experience competition from new firms that enter the industry.