If the dollar buys less cotton in Egypt than in the United States, then traders could make a profit by
a. buying cotton in the United States and selling it in Egypt, which would tend to raise the price of cotton in the United States.
b. buying cotton in the United States and selling it in Egypt, which would tend to raise the price of cotton in Egypt.
c. buying cotton in Egypt and selling it in the United States, which would tend to raise the price of cotton in Egypt.
d. buying cotton in Egypt and selling it in the United States, which would tend to raise the price of cotton in the United States.
a
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A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of foreign currencies leads to ________ international reserves which ________ the monetary base
A) purchase; higher; increases B) purchase; lower; decreases C) sale; lower; decreases D) sale; higher; increases
In a perfectly competitive market profit attracts entry
a. True b. False