A measure of monopoly power used by the government is the
A. percentage difference between price and marginal cost.
B. percentage share of the relevant market or market share test.
C. profit of the firm compared to other firms in the industry.
D. price charged by the firm for goods and services.
Answer: B
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The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:
A. U.S. consumers increase their preference for Japanese cars. B. the Bank of Japan tightens monetary policy. C. real GDP in the U.S. increases. D. the U.S. Federal Reserve tightens monetary policy.
Other things the same, in the open-economy macroeconomic model, which of the following would make China's net capital outflow increase?
a. an increase in U.S. interest rates b. an increase in Chinese interest rates c. an appreciation of the Chinese yuan d. None of the above is correct.
Name two actions that a government could take if it wants to implement an expansionary fiscal policy
What will be an ideal response?
When the Fed increases the quantity of money, the
A) demand for money curve shifts rightward. B) equilibrium nominal interest rate falls. C) equilibrium nominal interest rate rises. D) supply of money curve shifts leftward. E) demand for money curve shifts leftward.