An increase in the real rate of interest that can be earned on U.S. investments above the rate that can be earned on investments in India would:
a. increase the price of the dollar in Indian rupees.
b. increase the supply of dollars by those holding U.S. dollars.
c. decrease the equilibrium exchange rate of Indian rupees per dollar.
d. all of these.
a
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Because there are ________ for total factor productivity, ________ must be the explanation for increases in labor productivity and the standard of living
A) diminishing marginal returns; capital accumulation B) no diminishing marginal returns; total factor productivity C) no diminishing marginal returns; capital accumulation D) diminishing marginal returns; total factor productivity
Signals may prevent adverse selection if
A) sending a false signal is cheap for the agent. B) sending a false signal is costly for the agent. C) agents as rational. D) signals are as good as cheap talk.