If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8
b. $7
c. just over $8
d. just under $7
a
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When the U.S. interest rate ________ relative to foreign interest rates, the supply of dollars ________ and the supply curve of dollars shifts rightward
A) rises; increases B) rises; does not change C) falls; decreases D) falls; increases E) rises; decreases
Which of the following correctly identifies characteristics of land and capital?
A) Land and capital can both be rented and owned. B) Land is rented, whereas capital is owned. C) Land can be owned or rented, whereas capital can only be owned by a firm. D) Capital can be owned or rented by a firm, whereas land can only be owned by a firm.
Jim recently graduated from college. His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a car. This implies that
a. The car is a normal goods for Jim b. The car is an inferior goods for Jim c. The bus and the car are complementary for Jim d. Need information on the price of cars
If the Fed decides to maintain a fixed euro/dollar exchange rate when they sell euros:
A. there will be pressure on domestic interest rates to increase. B. the domestic money supply will increase. C. they will have to impose capital controls. D. this will increase banking system reserves.