Any central bank policy that influences the domestic interest rate will:
A. not impact the supply of and demand for the domestic currency if exchange rates are flexible.
B. be compatible with fixed exchange rates.
C. have an effect on the exchange rate.
D. have no effect on the exchange rate if exchange rates are flexible.
Answer: C
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Figure 4.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
In order to survive in political office, politicians must be steadfast in their convictions and be unwilling to change their political platforms
a. True b. False
Which of the following is an example of an ad valorem tax?
A) 5% of price. B) 5% of quantity sold. C) $0.50 per unit sold. D) Government regulation.
What are the three primary measures used in macroeconomics to assess the performance of an economy?
What will be an ideal response?