If Boliva's terms of trade changes from 1.00 to 1.20, it implies that
a. Bolivia is exporting more than it's importing
b. Bolivia is importing more than it's exporting
c. Bolivia's export prices have risen relative to its import prices
d. Bolivia has lost the comparative advantage in the production of goods
e. Bolivia now has an absolute advantage in the production of goods
C
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Foreign exchange arbitrage refers to:
a. the simultaneous purchase and sale of a foreign currency asset in different markets to take advantage of a price differential. b. actions taken to lower currency trading risks and make the markets safer. c. the forgiving of penalties and other punishments for illegal foreign exchange activities. d. government purchases or sales of a nation's own currency in international markets to change or stabilize the value of the currency.
Fearing that the economy was overheating, policymakers instituted a temporary tax surcharge in 1968. This temporary surtax
A) drastically reduced both savings and consumption. B) increased savings and reduced consumption. C) reduced savings but had little effect on consumption. D) successfully reduced consumption sufficiently to cool down the economy.