Author Question: In the loanable funds market, which of the following is an example of investment demand? A) Mark ... (Read 28 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?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

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.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

For a complete list of videos, visit our video library