If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
a. appreciate the dollar and decrease the price of gold.
b. depreciate the dollar and increase the price of gold.
c. depreciate the dollar and decrease the price of gold.
d. appreciate the dollar and increase the price of gold.
a
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We allocate resources efficiently when
A) marginal benefit is equal to marginal cost. B) marginal benefit is greater than marginal cost by any amount. C) marginal cost is greater than marginal benefit. D) total benefit is greater than total cost. E) marginal benefit is greater than marginal cost by as much as possible.
Write down a model that will allow you to analyze the BOP and exchange rate in a monetary framework. Then, discuss the consequences of an increase in the foreign inflation rate under fixed, flexible, and managed floating systems
What will be an ideal response?
According to the real business cycle theory, what is the principal cause of business cycle fluctuations?
What will be an ideal response?
The market supply in a perfectly competitive market is:
A. fixed. B. the sum of the quantities that each individual producer is willing to supply. C. the total quantity of a good that the biggest market shareholder supplies at a given price. D. derived from the MC curves from each firm after MC hits ATC.