Author Question: In the loanable funds market, which of the following is an example of investment demand? A) Mark ... (Read 14 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
In the loanable funds market, which of the following is an example of investment demand?
 
  A) Mark buying rare gold coins
  B) Scott purchasing a rookie-year baseball card for last year's World Series MVP
  C) Mary buying stocks for her retirement portfolio
  D) Brian, owner of Bryan Games, purchasing computers to enhance the production of games
  E) George purchasing United States savings bonds for his son's college fund

Question 2

Explain what is meant by a devaluation of a currency. Under what circumstances would a country devalue its currency?
 
  What will be an ideal response?



babybsemail

  • Sr. Member
  • ****
  • Posts: 304
Answer to Question 1

D

Answer to Question 2

In a fixed exchange rate system, a country faces a balance of payments deficit when the supply of its currency exceeds the demand at the fixed exchange rate. The country can lower the value at which the currency is pegged to increase its net exports; this is called a devaluation.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

For a complete list of videos, visit our video library