In the current international monetary system, what is the role for gold?
A. The system is a gold-exchange standard, based on a fixed value for a key currency.
B. Gold backs each currency, and therefore, the system as a whole.
C. It serves as the principal reserve asset.
D. It has no role.
Answer: D
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The figure above shows the market for candy. People become more concerned that eating candy causes them to gain weight, which they do not like. As a result, the
A) demand curve shifts from D2 to D1 and the supply curve does not shift. B) demand curve shifts from D1 to D2 and the supply curve shifts from S1 to S2. C) demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1. D) demand curve does not shift, and the supply curve shifts from S1 to S2.
Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causes the M1 money multiplier to ________, everything else held
constant. A) increase from 0.73 to 0.78 B) decrease from 0.73 to 0.61 C) increase from 1.54 to 1.67 D) decrease from 1.67 to 1.54
Tariffs are frequently used in less-developed countries because _____
a. the governments need more revenue b. the governments want to encourage exports c. the governments find it easier to monitor border transactions than interior transactions d. the governments prefer to tax goods over services
Government outlays consist of
a. all governmental purchases resulting from contracts with the private sector and foreign organizations b. government purchases, transfer payments, and interest on the national debt c. any purchase by an organization that is not trying to earn a profit d. government purchases and transfer payments minus the interest on the national debt e. total receipts from all organizations doing business with any level of government