Using a fixed exchange rate to undervalue your currency:
A. will increase your exports.
B. will encourage capital flow to countries other than your own.
C. makes imports very expensive for your citizens.
D. All of these statements are true.
D. All of these statements are true.
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Assuming that the marginal social benefit (MSB) of environmental quality is known, then
a. theMSB represents the demand for environmental quality b. total social benefits (TSB) of abatement, A1, can be captured as an area under the MSB up to A1 c. incremental benefits are measured as an area under the MSB between the pre- and post-policy abatement levels d. all of the above e. none of the above
What is one thing the Fed can do to increase the money supply?
a. raise reserve requirements b. increase the interest rate paid on reserves c. buy bonds d. increase the discount rate
Vic derives less satisfaction from each additional cup of coffee he drinks. Therefore, he will buy added cups of coffee only if ______.
a. the quantity is increased b. the price is reduced c. the quantity is reduced d. the price is increased
Which of the following is NOT one of the common explanations given for the U.S. trade deficit?
A. Other countries subsidize their exports. B. The U.S. government has a large budget deficit. C. The United States is a wealthy, stable country, making it attractive for loans from other countries. D. U.S. income tax rates are high compared to those in other countries.