« previous next »

Author Question: In the loanable funds market, which of the following is an example of investment demand? A) Mark ... (Read 67 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
« previous next »
 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Mark Rothko, Four Darks in Red. Mark Rothko, Four Darks in Red.
Attention and memory are in demand during circle time. Attention and memory are in demand during circle time.
Cylinder 1 and timing mark location guide. Cylinder 1 and timing mark location guide.
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
Effect of Increasing the Investment Rate on the Steady State Effect of Increasing the Investment Rate on the Steady State
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Video: Power Supply Polyacrylamide Gel Protein Sample

For a complete list of videos, visit our video library