What do we do when solving for equilibrium conditions?

A) conduct a statistical t-test
B) drop one equation
C) partition the matrix of transition probabilities
D) subtract matrix B from the identity matrix
E) multiply the fundamental matrix by the A matrix

B

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Companies that have well-established exporting procedures typically use an export management company to handle financial transactions.

a. true b. false

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In Figure 4.4, the most likely cause of the increase in the equilibrium interest rate from i1 to i2 is a(n) ________ in the ________

A) increase; expected inflation rate B) decrease; expected inflation rate C) increase; government budget deficit D) decrease; government budget deficit

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