If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
a. appreciate the dollar and decrease the price of gold.
b. depreciate the dollar and increase the price of gold.
c. depreciate the dollar and decrease the price of gold.
d. appreciate the dollar and increase the price of gold.
a
Economics
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If there were no adverse selection problems in the stock market,
A) some well-run firms would pay more to raise funds. B) some poorly-run firms would pay less to raise funds. C) the willingness of savers to invest in the market would be increased. D) the volume of new stock issues would be lower.
Economics
Based on the transactions in the above table, what is the change in the U.S. current account balance?
A) $30,000 B) $31,000 C) -$32,500 D) -$32,700
Economics