The supply of Thai baht in the foreign exchange market originates with:
a. tourists who go on vacation to Thailand.
b. the export of Thailand oranges and other goods.
c. Thai residents who wish to purchase goods from other countries.
d. the Thai royal family.
e. Thai central bank intervention to stop the peseta from depreciating.
Question 2If as a result of NAFTA the demand for American exports rises, it would tend to increase the exchange value of the U.S. dollar as a result.
a. True
b. False
Indicate whether the statement is true or false
Question 3Which of the following accounted for the highest percentage of federal government spending in 2013?
a. net interest on the national debt
b. income security
c. national defense
d. education and health
Question 4Suppose you observe that with a given supply curve, the Peruvian demand for Argentinean pesos steadily decreases. This will most likely mean:
a. the supply of Peruvian nuevos soles has increased on the foreign exchange market.
b. the Argentinean peso will appreciate in value relative to the Peruvian nuevo sol.
c. the Argentinean peso will depreciate in value relative to the Peruvian nuevo sol.
d. the Peruvian demand for Argentinean goods has increased.
e. the supply of Argentinean pesos has increased on the foreign exchange market.
Question 5If a country has a net capital inflow, it is almost certainly experiences both capital inflows and capital outflows.
a. True
b. False
Indicate whether the statement is true or false
Question 6A progressive tax:
a. is designed to take a larger percentage of higher incomes as compared to lower incomes.
b. takes a greater proportion of the income of lower-income groups than of higher-income groups.
c. is designed so that everybody would be charged the same percentage of their income.
d. is designed to take a smaller percentage of higher incomes as compared to lower incomes.
Question 7Assume that you have just returned to the United States from a summer vacation in Russia, where you exchanged American dollars for Russian rubles. Your economic actions can be said to have:
a. increased the supply of American dollars in Russia.
b. decreased the supply of Russian rubles in America.
c. decreased the supply of American dollars in Russia.
d. increased the demand for American dollars in America.
e. increased the supply of Russian rubles in Russia.
Question 8If real interest rates were 6 in country A and 4 in country B, the real interest rate in both countries will move toward 5.
a. True
b. False
Indicate whether the statement is true or false
Question 9If a flat tax plan allowed individuals to deduct a standard allowance of 20,000 and the flat tax rate was 20 percent, an individual earning 100,000 would pay an average tax rate of 20.
a. True
b. False
Indicate whether the statement is true or false
Question 10An upward-sloping supply curve of Korean won in terms of Canadian dollars indicates that:
a. the higher the dollar price of Korean won, the more won will be demanded.
b. the higher the dollar price of Korean won, the fewer won will be supplied.
c. the lower the dollar price of Korean won, the more won will be demanded.
d. the lower the dollar price of Korean won, the fewer won will be supplied.
e. the Korean economy is stronger than the Canadian economy.
Question 11When real interest rates are higher in country A than country B, there will tend to be a capital flow from country B to country A.
a. True
b. False
Indicate whether the statement is true or false
Question 12Vertical equity is the concept that people with different levels of income should be treated differently.
a. True
b. False
Indicate whether the statement is true or false
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