Suppose that at the prevailing euro-dollar exchange rate there is an excess demand for dollars. To stabilize exchange rates, the United States might
A. Reduce government spending.
B. Raise taxes.
C. Raise interest rates.
D. Decrease trade restrictions on euro-priced goods.
Answer: D
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A firm hires labor up to the point where the
A) real wage rate equals the nominal wage rate. B) real wage rate exceeds the nominal wage rate. C) additional hour of labor produces extra output that equals the real wage rate. D) additional hour of labor produces extra output that equals the nominal wage rate. E) firm can sell the extra output.
Compared to a tariff, an import quota, which restricts imports to the same amount as the tariff, will leave the country as a whole
A) worse off than a comparable tariff. B) not as bad off as a comparable tariff. C) about the same as a comparable tariff. D) Any of the above can be true.
Under tacit collusion,
a. firms form an explicit agreement to cooperate b. prices are usually lower than under perfect competition c. firms are usually subject to prosecution in the United States d. there is no explicit agreement for firms to cooperate e. firms meet to set prices and output levels for the industry
The EPA formulated the Drinking Water Strategy (DWS)
a. under the Clinton administration b. to recognize the importance of addressing contaminants one at a time c. with four identified goals, including one to develop new drinking water technologies d. solely to revise regulations for private well water