Even when earning zero profit, exporters (nearly) equalize prices across markets. ?
Answer the following statement true (T) or false (F)
True
Rationale: Differences in prices tend to be small in most markets because exporters and importers ship large quantities of goods, and therefore need only a tiny difference in price per unit to continue shipping goods from one place to another.
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Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The GDP Price Index rises, and nominal value of the domestic currency rises. c. The GDP Price Index falls, and nominal value of the domestic currency rises. d. The GDP Price Index rises, and nominal value of the domestic currency remains the same. e. The GDP Price Index rises, and nominal value of the domestic currency falls.
Suppose an economy experiences an increase in its saving rate. The higher saving rate leads to a higher growth rate of productivity
a. in the short run, but not in the long run. b. in the long run, but not in the short run. c. in both the short run and the long run. d. in neither the short run nor the long run.