If the U.S. interest rate differential falls, then the exchange rate
A) does not change.
B) definitely falls.
C) definitely rises.
D) falls only if it was the U.S. interest rate that changed.
E) rises only if it was the foreign interest rate that changed.
B
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Diversification is determined by adding value
Indicate whether the statement is true or false
Refer to Figure 29.2 for Farmer Smith with a price floor set above the market price. Assume the price support is located at the minimum point on the farmer's ATC curve. If this support is eliminated, all of the following will result except
A. The rate of return on invested capital will increase. B. Farmers will begin to lose money as the price returns to equilibrium. C. Fewer resources will be allocated to this market. D. Some farmers will leave the industry.