Borrowing in foreign currencies to spend or invest domestically,
a. decreases demand for the domestic currency, appreciating the domestic currency
b. increases demand for the domestic currency, depreciating the domestic currency
c. increases demand for the domestic currency, appreciating the domestic currency
d. does not affect the exchange rates
Question 2
Theoretically, in a long-run cost function:
a. all inputs are fixed
b. all inputs are considered variable
c. some inputs are always fixed
d. capital and labor are always combined in fixed proportions
e. b and d
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