Answer the following questions true (T) or false (F)

1. An expansionary monetary policy by the Federal Open Market Committee would cause interest rates to decline and the exchange rate to depreciate, ceteris paribus.

2. Comparative advantage is a monetary concept and is affected by changes in exchange rates or inflation.

3. The mercantilist philosophy argues that nations can become rich and powerful by exporting more than they import.

1. FALSE
2. FALSE
3. TRUE

Economics

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If the nominal interest rate is 4 percent and the inflation rate is 1 percent, then the real rate of interest is

A) 1 percent. B) 3 percent. C) 4 percent. D) 5 percent.

Economics

What is one reason the eBay seller reputation system is important?

A) eBay transactions tend to be isolated, one-off transactions. B) eBay transactions tend to be repeat sales between the same seller and buyers. C) eBay transactions often involve stolen products. D) eBay transactions require a larger percentage than, say, Amazon transactions.

Economics