Lower transaction costs are a benefit of fixed exchange rates. Therefore, relative prices in two trading nations linked by fixed exchange rates should:
A) experience more price divergence.
B) experience more price convergence.
C) have less arbitrage and more speculation.
D) have lower costs of production.
Ans: B) experience more price convergence.
Economics
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Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $9,500 billion. What is the rate of growth of real GDP between 2017 and 2018?
A) -10% B) -5% C) -2% D) -1%
Economics
In the Standard Oil case, the company was accused of violating the law that prohibits
A. firms from attempting to undercut competitors' prices. B. charging prices that are unfairly too high. C. firms from using their monopoly in one market to increase market share in another. D. firms from successfully achieving monopoly status.
Economics