The reduction or covering of a foreign exchange risk is called
A) hedging.
B) speculation.
C) intervention.
D) arbitrage.
A
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Price elasticity of supply is defined as
A) the quantity supplied divided by the quantity demanded. B) the change in the quantity supplied divided by the change in the quantity demanded. C) the percentage change in the quantity supplied divided by the percentage change in price. D) the percentage change in the quantity supplied divided by the percentage change in the quantity demanded.
An important lesson about pricing is
a. Do not bargain with the customer b. When bargaining with the customer, do not bargain over the bundled price, bargain over unit price c. When bargaining with the customer, do not bargain over the unit price, bargain over the bundled price d. Bargain with the customer over everything
Which of the following is NOT an important factor affecting economic growth?
A. the rate of growth of capital B. the growth of leisure C. the rate of growth in labor productivity D. the rate of saving
The Lucas supply function, in combination with the assumption that expectations are rational, implies that an announced monetary policy change will lead to
A. a negative price surprise. B. a positive price surprise. C. a positive price surprise for expansionary monetary policy and a negative price surprise for contractionary monetary policy. D. no price surprise.