Author Question: Which of the following increases the possibility of depreciation of the domestic currency in the ... (Read 22 times)

SO00 · **on:** Jun 30, 2018

Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?
a. An increase in the demand for domestic goods in the foreign market
b. A decrease in total imports made by the domestic country
c. A decrease in the interest rates in the domestic country
d. An increase in the short-term foreign investments
e. An increase in domestic production of import substitutes

Question 2

To internalize a positive externality:
a. the consumers of a good could receive a subsidy equal to the external benefit resulting from the production or consumption of the good.
b. a producer's costs could be increased by an amount equal to the external benefit resulting from the production of the good.
c. consumers of the good could pay a tax equal to the external benefit resulting from the production or consumption of the good.
d. None of the above are correct.