If a country tries to maintain a fixed exchange rate, it must be
A. willing to print and sell its own currency to weaken it, if needed.
B. a communist nation to accomplish it.
C. willing to sell gold and hard currency to weaken its currency, if needed.
D. willing to print and sell its own currency to strengthen it, if needed.
Answer: A
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A monopolist sells to two consumer groups, students and non-students
Demand for students: Q = 500 - 1/2P Demand for non-students: Q = 750 - 2P MC = 20 Find the profit-maximizing price/quantity combination in each market if the groups can be separated.
Refer to Figure f. A benefit function, W(F), is plotted in Figure f. The letter A represents:
A. the risk premium of the consumption bundle.
B. the expected utility of the consumption bundle.
C. the certainty equivalent of the consumption bundle.
D. the expected consumption.
Suppose that the demand for light bulbs is inelastic, and the supply of light bulbs is elastic. A tax of $2 per bulb levied on light bulbs will increase the price paid by buyers of light bulbs by
a. less than $1. b. $1. c. between $1 and $2. d. $2.
Which of the following situations is used as a justification for government?
A) negative externalities B) removal from the prisoner's dilemma C) nonexcludable goods D) positive externalities E) all of the above