Exchange rate interventions occur when a government:
a. buys and sells its own currency on forex markets.
b. buys and sells other currencies on forex markets.
c. increases its interest rate.
d. buys and sells its own currency and other currencies on forex markets.
Ans: d. buys and sells its own currency and other currencies on forex markets.
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Deflation is defined as
A. a decrease in the inflation rate. B. a fall in the average price level. C. a period during which the average price level is low. D. a low rate of change in average prices.
Which of the following business combinations likely exhibit economies of scope?
A) Banking services for individuals and banking services for other business B) Retail clothing stores and electronic (internet) clothing sales C) Hospitals that perform heart surgery and hospitals that perform cosmetic surgery D) all of the above