An appreciation of the domestic currency can be caused by ________
A) a decrease in the domestic interest rate
B) an increase in the domestic interest rate and expectation of an increase in the value of the domestic currency
C) an increase in the domestic interest rate and the expectation of a decrease in the value of the domestic currency
D) the expectation of a decrease in the value of the domestic currency
B
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The efficiency-wage theory of worker health is
a. more relevant for explaining unemployment in less developed countries than in rich countries. b. more relevant for explaining unemployment in rich countries than in less developed countries. c. equally relevant for explaining unemployment in less developed countries and in rich countries. d. not relevant for explaining unemployment.
Suppose a Chinese firm moves its final assembly line to France and then ships the final products to other members of the EU trading bloc. This is an example of
A) trade diversion. B) trade deflection. C) trade restriction. D) trade detection.