If a country has a fixed exchange rate
A) central banks must buy and sell their holdings of currencies to maintain a given exchange rate.
B) central banks have more control over real GDP in the economy.
C) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency.
D) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency.
A
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If two airlines wish to merge, they must seek permission of the
A. Agency for International Air Traffic. B. Federal Anti-Trust Agency. C. Federal Trade Commission. D. Federal Communications Commission.
The nationally optimal tariff is the tariff for which
A. the difference between the part of the tariff paid by the exporters and the welfare loss associated with the consumption and production effects is the highest. B. the government collects the highest tariff revenue. C. the difference between the government tariff revenue and the sum of consumption and production effect is the highest. D. the production effect is equal to the consumption effect of the tariff.
In Figure 4.3, the most elastic supply curve:
A. is Supply1. B. is Supply2. C. is Supply3. D. cannot be determined.
The marginal-utility-to-price ratio tells us that if the price of a good falls, then, ceteris paribus
a. its marginal-utility-to-price ratio falls b. its marginal-utility-to-price ratio rises c. its marginal utility falls d. its marginal utility rises e. consumers buy less of the good