Under the system of pegged exchange rates, when the domestic currency's value presses against the top of its official price range, officials must
A. sell foreign currency and buy domestic currency.
B. guide the exchange rate to reach the equilibrium rate.
C. buy foreign currency and sell domestic currency.
D. let the exchange rate change and refrain from intervention in the foreign exchange market.
Answer: C
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As demonstrated by the labor supply schedule, the quantity of labor supplied depends on
A) workers' productivity. B) the value of the dollar. C) the nominal wage. D) the amount of labor that firms want to hire. E) the real wage.
The minimum percentage of deposits that a depository institution must hold and cannot use for lending is known as the
A) minimum rate. B) required reserve ratio. C) money multiplier. D) discount rate.
Property that is owned by everyone and therefore by no one in particular is referred to as
A) common property. B) social property. C) private property. D) commercial property.
Welfare benefits
a. may do of all of the following b. may discourage poor people from taking jobs c. may cause job skills to deteriorate d. take the form of cash or in-kind transfers e. allow increased consumption by many poor children