Which account of the balance of payments is most likely to be directly affected by a rise in the real risk-free interest rate in a foreign country?
a. Current international transactions
b. Net nonreserve-related international borrowing/lending
c. Official reserve-related (central bank) transactions
d. None.
.B
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In the above figure, the equilibrium price of a paperback book is $6 per book and the equilibrium quantity is 3 million books. The National Literature Board convinces the government to impose a price ceiling of $3 per book
At this price, the quantity of books supplied to the market will be A) 3 million a month and will equal the quantity demanded. B) less than 3 million a month and will exceed the quantity demanded. C) less than 3 million a month and will be less than the quantity demanded. D) more than 3 million a month and will exceed the quantity demanded.
If production of a good creates beneficial externalities, a perfectly competitive market will produce
A. less output than would maximize profit. B. more output than would maximize profit. C. less output than is socially efficient. D. more output than is socially efficient.
When the U.S. dollar appreciates,
What will be an ideal response?
The principal-agent problem is quite common in large public corporations due to:
A. the fact that the people making the operational decisions are usually not the owners. B. too little regulation by government. C. the fact that large companies employ many people. D. the fact that large corporations generate large sales volumes.