If international financial transactions are prohibited
A. exchange rates cannot remain fixed.
B. borrowers in poorer countries will probably pay low interest rates.
C. lenders in the richer countries will probably earn high rates of return.
D. lenders in the richer countries will probably earn low rates of return.
Answer: D
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When the long-run average cost curve is downward sloping,
A) economies of scale are present. B) diseconomies of scale are present. C) the firm experiences constant returns to scale. D) the average fixed cost curve must be upward sloping. E) The premise of the question is wrong because long-run average cost curves never slope downward.
The services of real estate brokers are provided in a competitive market. If the state Board of Realtors enacts several requirements that limit the number of real estate brokers, which of the following is most likely to occur?
A) The supply curve of real estate brokers will shift to the left. B) The supply curve of real estate brokers will shift to the right. C) Social welfare will remain unchanged. D) The supply curve will remain unchanged.