A currency swap can
A) make foreign goods more expensive in the domestic market.
B) make the foreign exchange rate more volatile over time.
C) reduce foreign exchange risk.
D) make domestic goods more expensive in foreign countries.
Answer: C
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The difference between short-run and long-run cost is that in the short run,
a. there are shortages of labor that can restrict output b. only labor can be changed to increase or decrease production c. fixed factors of production have already been chosen d. the market-day supply limits the amount by which producers can change production e. all factors of production are variable
With pollution permits, the supply curve for pollution rights is
a. perfectly elastic. b. perfectly inelastic. c. upward sloping. d. downward sloping.