Which of the following countries engages in a fixed exchange rate policy?
A. The U.S.
B. Japan
C. The United Kingdom
D. China
Answer: D
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If Best Dogs only sells their hot dogs in packages of eight, all of the following are true except which one?
A) Best Dogs' customers are spending the consumer surplus they would have received on the first few hot dogs on the last few hot dogs. B) Best Dogs has market power. C) Best Dogs is practicing second-degree price discrimination. D) Best Dogs is changing consumer surplus into profit.
Suppose you found Eurodollars in a public park and reported it to the police. After 10 days, the police called to say that no one claimed those Eurodollars. They're now yours. The police have never seen Eurodollars before and ask: "What are these things?" You tell them it's money. "What kind of money?" they ask. You reply
a. M1 money b. M2 money c. specie d. near money e. asset money
The GDP figures fail to count labor services and other household production. Once this omission is taken into account,
a. the income differences between the high and low income countries are small. b. the differences in living standards between the high and low income countries are small. c. the income differences between the high and low income countries are still huge. d. the life expectancy in the high and low income countries is approximately the same.
Suppose that an expansionary gap of $500 billion exists in the economy, and the marginal propensity to consume is 0.8 . Which of the following correctly describes a discretionary fiscal policy that will be just sufficient to close this expansionary gap?
a. Increase government spending by $250 billion. b. Increase taxes by $125 billion. c. Decrease government spending by $250 billion. d. Decrease taxes by $125 billion.