Which of the following would occur as a result if Europe experienced a lower inflation rate than the U.S.?
a. European products would become more expensive to U.S. consumers
b. It would decrease the quantity of European goods demanded by Americans.
c. It would decrease the demand for Euros.
d. None of the above would occur.
d
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A liquidity provider is someone who:
A. helps make a market more liquid by being always ready to buy or sell an asset. B. works at a bank and specializes in loans. C. works in the financial system. D. invest in the economy.
For a price ceiling to be binding, it
a. cannot be determined. b. is the same as the equilibrium price. c. must be above the equilibrium price. d. must be below the equilibrium price.
In the theory of monopoly, which of the following is an exogenous variable?
a. The technology available to the monopoly. b. The price charged by the monopoly. c. The level of output produced by the monopoly. d. The profit earned by the monopoly.
Which of the following explains why managers of government agencies have little incentive to achieve operational efficiency?
What will be an ideal response?