If the fundamental value of the nominal exchange rate equals 0.20 U.S. dollars per franc, but the franc is officially fixed at 0.15 U.S. dollars per franc, then the franc exchange rate is ________ and to maintain this exchange rate there will be ________ in the government's stock of international reserves.
A. overvalued; a net increase
B. undervalued; a net increase
C. undervalued; a net decline
D. overvalued; a net decline
Answer: B
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If gasoline prices rise by 20% and quantity demanded falls by 5%., then the price elasticity of demand is:
A) .05. B) .15. C) .20. D) .25. E) .40.
The U.S. antitrust laws
A) aid monopolies in their quest to dominate the market for a good or service. B) are outdated and rarely used anymore. C) promote competition. D) are administered by the Department of Commerce.
The minimum points of the average variable cost and average total cost curves occur where
a. the marginal cost curve lies below the average variable cost and average total cost curves b. the marginal cost curve intersects those curves c. wages are the lowest d. the slope of total cost is the smallest e. the elasticity of demand is unitary
Property rights are a tangible factor in producing economic growth
Indicate whether the statement is true or false