An exchange rate is the price of one currency in terms of a second currency
a. True
b. False
Indicate whether the statement is true or false
True
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If a commercial bank is short of reserves, it can obtain funds by
a. recalling loans. b. borrowing from another commercial bank. c. borrowing from its Federal Reserve Bank. d. all of these methods.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
What are economies of scope?
a. the cost of producing two products jointly by one firm is more than the cost of producing them separately b. the cost of producing two products jointly by one firm is lesser than the cost of producing them separately c. the cost of producing two products jointly by one firm is equal to the cost of producing them separately d. none of the above
When raising taxes, the price effect tells us that the:
A. higher tax rate causes fewer units to be sold. B. government gets more revenue per units sold. C. government gets less revenue per unit sold. D. higher tax rate causes more units to be supplied.