When deciding between domestic and foreign financial investments, investors typically consider
A) domestic and foreign inflation rates and expected changes in the exchange rate.
B) domestic and foreign budget deficits.
C) shifts in the relative demand for foreign and domestic goods.
D) domestic and foreign interest rates and expected changes in the exchange rate.
D
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The study of how people choose among the alternatives available to them is the:
A) definition of economics. B) model of demand. C) theory of opportunity costs. D) method of distinguishing between microeconomics and macroeconomics.
In a monopolistically competitive market there are
A) many firms producing an identical product. B) many firms producing similar but not identical products. C) many firms producing totally different products. D) few firms producing identical products.