Indirectly, overvalued exchange rates in Latin America caused A) a capital shortage in agriculture. B) a capital shortage in industry. C) a capital abundance in agriculture. D) a growth in incomes in rural areas. E) an increase in competitive pressures faced by industry. ANSWER A
Date: September 10th, 2020
Leontief found that A) U.S. exports are capital intensive relative to U.S. imports. B) U.S. imports are labor intensive relative to U.S. exports. C) U.S. exports are neither labor nor capital intensive. D) None of the above. ANSWER B
Date: September 10th, 2020
Internal balance can be graphically represented as the intersection of the IS curve with the LM curve. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following statements is the MOST accurate? In general A) the monetary approach to the exchange rate is a long run theory. B) the monetary approach to the exchange rate is a short run theory. C) the monetary approach to the exchange rate is both a short and long run theory. D) the […]
Date: September 10th, 2020
Given the information in the table above. If these two countries trade these two goods in the context of the Ricardian model of comparative advantage, then what is the lower limit of the world equilibrium price of widgets? What will be an ideal response? ANSWER 1/2 Cloths.
Date: September 10th, 2020
Which one of the following statements is most correct? A) Any central bank purchase of assets automatically results in an increase in the domestic money supply, while any central bank sale of assets automatically causes the money supply to decline. B) Any central bank purchase of assets results in an increase in the domestic money […]
Date: September 10th, 2020
In international finance, what does SDR stand for? A) Special Drawing Rights. B) Single Deposit Reserve. C) Savings Deposit Ratio. D) Single Demand Remittance. ANSWER A
Date: September 10th, 2020
Trade without serious income distribution effects is most likely to happen A) in sophisticated manufactures trade between rich countries. B) in simple manufactures trade between developing countries. C) in sophisticated manufactures trade between rich and poor countries. D) in agricultural trade between rich countries. E) in labor-intensive industries like clothing. ANSWER A
Date: September 10th, 2020
The experience of Chile’s foreign sector in the last two decades of the 20th century supports the proposition that economic growth is supported by A) import substitution. B) industrialization policies. C) trade liberalization policies. D) intra-industry trading. E) trade embargoes. ANSWER C
Date: September 10th, 2020
When an individual or firm in the United States requests that a bank sell foreign exchange, the bank will probably A) call a foreign bank and arrange a purchase. B) call the central bank and arrange a purchase. C) call another bank customer with foreign exchange holdings. D) call another domestic bank and arrange a […]
Date: September 10th, 2020
