Which of the following is correct?
a. An increase in the tariff on foreign-produced automobiles will benefit U.S. consumers of domestic cars.
b. An ongoing result of the North American Free Trade Agreement is that producers in both countries will benefit at the expense of consumers.
c. The wages of U.S. workers would sharply decline if we traded freely with low-wage countries like India and China.
d. Exports provide a nation with its primary source of purchasing power used to buy imported goods.
D
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A firm using Baumol's model will do one of the following if the interest rate on short-term securities went up.
A) increase the collection period B) decrease the average cash balance C) increase the average cash balance D) decrease the collection period
Generally, exchange rates are quoted as a single price of a unit of foreign currency rather than a ratio because:
a. the ratio of the units of home currency to units of foreign currency is always equal to one. b. the denominator is always equal to one. c. the price is fixed by the government. d. the rate is adjustable in increments of 25 basis points.