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
Refer to the above table. Suppose both governments offer their respective company a subsidy of $4(million). What will be an ideal response? ANSWER Only Airbus will produce since it knows that the subsidy would not be sufficiently large to entice Boeing to also enter the market.
Date: September 10th, 2020
Which of the following is NOT a likely result of intraindustry trade based on internal economies of scale? A) Job creation at domestic firms entering international trade B) Lower prices for the domestic consumers of the product now being traded C) Increased sales and lower per unit costs for the firm doing the exporting D) […]
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
Internal economies of scale means that A) firms are experiencing lower average production costs due to a geographical concentration of firms in their industry that make it cheaper and easier to hire highly specialized workers and inputs. B) firms will have lower profits after international trade begins, because costs will be higher than when they […]
Date: September 10th, 2020
