If the rate of growth in the money supply is predetermined on the basis of a monetary rule, this is known as
A. active policymaking.
B. direct policymaking.
C. passive policymaking.
D. fiscal policymaking.
Answer: C
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A person holding dollar deposits during the devaluation of the dollar would
A) enjoy a monetary gain. B) see the foreign currency value of dollar assets increase by the amount of the exchange rate change. C) shift their wealth into domestic investments. D) suffer a monetary loss and see the foreign currency value of dollar assets decrease by the amount of the exchange rate change. E) see no change in their investments.
During times of financial crisis, mark-to-market accounting
A) requires that a financial firms' assets be marked down in value which can worsen the lending crisis. B) leads to an increase in the financial firms' balance sheets since they can now get assets at bargain prices. C) leads to an increase in financial firms' lending. D) results in financial firms' assets increasing in value.
Of the following choices, which is the best example of a nation's economic infrastructure?
a. Natural resources. b. Highway system. c. Government. d. Religious and cultural beliefs. e. Population growth rate.
Choosing to study for an exam until the extra benefit (e.g., improved score) equals the extra cost (e.g., the value of foregone activities) is:
A. an application of the Scarcity Principle. B. not an economic choice. C. not rational because it ignores the importance of total benefits and total costs. D. an application of the Cost-Benefit Principle.