Countries that borrow large amounts of money from foreign lenders prefer to:
A) hold an undervalued currency. B) hold an overvalued currency.
C) have a high rate of unemployment. D) have a low rate of inflation.
Suppose India borrows $10,000 from the U.S. at the beginning of 2012. The flexible exchange rate is 50 Indian rupees per dollar.
B
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Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the nation's financial account and reserves account
a. Financial account would rise and reserves account would fall. b. Financial account would not change and reserves account would fall. c. Financial account would fall and reserves account would not change. d. Financial account would fall and reserves account would fall. e. Financial account would fall and reserves account would rise.
When the value of money is on the vertical axis, the money supply curve is vertical and shifts right if the Federal Reserve buys bonds
a. True b. False Indicate whether the statement is true or false
A carbon tax placed on coal will:
A. shift the supply curve for coal to the right. B. shift the supply curve for coal to the left. C. not affect the supply curve for coal. D. decrease the demand for coal.
Use the above figure. If a commission regulates the above monopoly using marginal cost pricing, then the industry's output will be ________ and the product's price will be ________.
A. Q2; P3 B. Q2; P1 C. Q4; P1 D. Q3; P2