Money as a medium of exchange
I. Facilitates the exchange of goods
II. Reduces the incentive to barter
A) I only B) II only C) Both I and II D) Neither I nor II
C
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When a U.S. firm sells a good abroad for, say, 100 euros (assume $1.5=1euro), U.S. net exports increase by $150. These $150 in exports can be accounted for as $150 increase in capital outflow because ________
A) private consumption in the foreign country increases by $150 B) if the U.S. firm uses the 100 euros to buy a share of stock in a foreign firm, the firm is supplying U.S. capital to that foreign firm C) if the U.S. firm uses the proceeds to buy a U.S. bond, capital investment in the foreign country has increased D) all of the above E) none of the above
President George W. Bush's tax cut in 2001 was a rare example of
a. timely monetary policy. b. timely fiscal policy. c. the slow response of policy to events. d. the inability of Congress to react to policy needs.
In which market should you begin your analysis if immigration of low-skilled workers increases?
a. Foreign exchange market, with a shift in the supply of domestic currency b. Foreign exchange market, with a shift in the demand for domestic currency c. Real goods market with, a shift in aggregate supply d. Real goods market with, a shift in aggregate demand e. Real loanable funds market, with a shift in the supply of real loanable funds
The basis of judgment for the Standard Oil case was ________, whereas the basis of judgment for the ALCOA case was ________:
A. market concentration; interlocking directorships. B. monopolistic abuses; market structure. C. market structure; market performance. D. unfair business practices; price discrimination.