A sudden appreciation in the exchange rate of a country deteriorates the terms of trade of the country
a. True
b. False
Indicate whether the statement is true or false
True
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The main problem with using groundwater to increase water supplies is that
a. Groundwater tends to be contaminated with pesticides b. Groundwater is normally found in countries that already have sufficient supplies c. Groundwater aquifers are being rapidly depleted d. Groundwater tends to be too salty e. Groundwater tends to be too expensive
Refer to the diagram of the market for money. Given D m and S m , an interest rate of i 3 is not sustainable because the:
A. supply of bonds in the bond market will decline and the interest rate will rise.
B. supply of bonds in the bond market will increase and the interest rate will decline.
C. demand for bonds in the bond market will decline and the interest rate will rise.
D. demand for bonds in the bond market will rise and the interest rate will fall.