To prevent the dollar from depreciating, the U.S. central bank can try to fix the currency value of the dollar when they
A. buy foreign currencies in the foreign exchange market.
B. sell U.S. dollars in the foreign exchange market.
C. abandon the U.S. dollar and use another country's currency as its legal currency.
D. buy U.S. dollars in the foreign exchange market.
Answer: D
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How does a decrease in the demand for wheat ultimately lead to normal profits for wheat growers in the long run?
What will be an ideal response?
Based on the cost data in the above table, the long-run average cost (LRAC) is lowest when output is
A) 20. B) 40. C) 80. D) Long-run average cost is constant at all levels of output.
A tax that is structured so that people pay the same percentage of their income in taxes is called a(n):
a. flat tax. b. regressive tax. c. progressive tax. d. excise tax.
Related to the Economics in Practice on page 306: Almost 90 percent of advertisements seen in movie theaters are produced and sold by two firms, National CineMedia and Screenvision. Assume that National CineMedia is responsible for 70 percent of the advertising, Screenvision is responsible for 20 percent of the advertising, and the other 10 percent is produced by one other firm. Based on these numbers, the HHI in this industry would be
A. 100. B. 4,900. C. 5,400. D. 8,200.