If income in the United States increases more rapidly than the income of our trading partners, other things constant, the dollar will
a. appreciate, imports will become less expensive, and domestic exports will become more expensive to foreigners.
b. depreciate, imports will become less expensive, and domestic exports will become more expensive to foreigners.
c. appreciate, imports will become more expensive, and domestic exports will become less expensive to foreigners.
d. depreciate, imports will become more expensive, and domestic exports will become less expensive to foreigners.
D
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The implementation lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy. B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy. C) the time it takes to pass legislation to implement a particular policy. D) the time it takes for policy makers to change policy instruments once they have decided on the new policy. E) the time it takes for the policy actually to have an impact on the economy.
A pharmaceutical company executive has to decide whether to fund a new drug development project. For this project, a success would earn $90 million and a failure would cost $10 million in lost profits. At what probability of expected success should she fund the project?
a. 0.10 b. 0.20 c. 0.80 d. 0.90