When a central bank intervenes in the foreign exchange market to purchase a foreign currency, the transaction:
a. Increases the nation's monetary base and increases the reserves account in the balance of payments.
b. Decreases the nation's monetary base and increases the reserves account in the balance of payments.
c. Decreases the nation's monetary base and decreases the reserves account in the balance of payments.
d. Changes neither the monetary base nor the reserves account.
e. Increases the nation's monetary base and decreases the reserves account in the balance of payments.
.E
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Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5 and the wage rate is $62.50 per day, how many workers should Winnie employ to maximize his profit?
A) 2 B) 3 C) 4 D) 5
The members of the Board of Governors of the Fed are: a. elected by the member banks
b. chosen by the state governors. c. elected for seven-year terms. d. all replaced after each Presidential election. e. appointed by the president with the approval of the Senate.
A country has a comparative advantage over another in the production of gadgets if it can produce
a. more gadgets than can the other country. b. more gadgets than can any other country. c. gadgets more efficiently than it can produce any other good. d. gadgets at lower opportunity cost than can the other country.
The ______ is defined as the percentage of the population earning less than a certain threshold.
a. poverty line b. working poor c. lowest quintile d. poverty rate