Suppose foreign exchange markets anticipate a revaluation for country A. Further assume that policy makers in country A will continue to fix its nominal exchange rate. In order to peg the currency at its original level, which of the following must occur?
A) Increase the domestic interest rate.
B) Increase the domestic price level.
C) Convince trading partners to raise their interest rates.
D) all of the above
E) none of the above
B
Economics
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If your lawn and shrubs were killed by the fumes from a nearby factory and you hired a lawyer to sue the polluting firm, your legal fees would be considered
A) external costs. B) transactions costs. C) the social costs of pollution. D) sunk costs.
Economics
Refer to the scenario above. Jack and Jill will derive maximum utility if:
A) Jack tries to move the tree while Jill does not. B) Jill tries to move the tree while jack does not. C) both of them try to move the tree. D) neither of them tries to move the tree.
Economics