Can the U.S. dollar and the European euro both appreciate relative to each other?
A. Yes, both countries can gain in this manner.
B. Yes, provided the central banks permit it.
C. No, unless there is a system of fixed exchange rates.
D. No, if one currency appreciates, the other must depreciate.
Answer: D
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What is TRUE when the credit market is in equilibrium?
A) The legal minimum wage equals the actual wage. B) Desired saving equals desired investment. C) Desired employment equals the number of jobs available. D) Desired consumption spending equals the total of saving plus investment.
Development economics must have a scope wider than traditional economics because
a. values and attitudes play little role in the pace of development. b. people in developing societies do less utility-maximizing. c. transformation of social institutions is necessary for development. d. all of the above.