The supply of euros would come from
A. American demand for European real estate.
B. European demand for U.S. government bonds.
C. Americans vacationing in Barcelona, Spain.
D. French supplies of wine to U.S. importers.
Answer: B
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Government regulation of monopoly
a. separates monopoly pricing from monopolies b. is undesirable when there is a natural monopoly c. cannot be done when there are monopoly profits d. is unnecessary when economies of scale exist e. will result in economic profits to the regulated firm
The intent of indexing is to
a. raise tax revenue automatically during inflation. b. shift the short-run Phillips curve to the right. c. take most of the sting out of inflation. d. reduce inflation gradually.
An increase in the money supply is likely to decrease:
A) prices. B) nominal income. C) money demand. D) interest rates.
Which of the following is NOT a characteristic of monopolistic competition?
A. advertising B. large number of sellers C. differentiated products D. barriers to entry