Refer to the diagram where D and S are the United States' demand for and supply of Swiss francs. At the equilibrium exchange rate, E, the United States' balance of payments is in equilibrium. Given a change in demand from D to D', the United States could maintain the dollar price of Swiss francs by:
A. shifting the S curve to the right through the use of domestic expansionary policies.
B. instituting exchange controls to ration Ed Swiss francs to U.S. importers who want Ec
francs.
C. using international monetary reserves to cover the Ec shortage of Swiss francs.
D. using international monetary reserves to cover the cd shortage of Swiss francs.
D. using international monetary reserves to cover the cd shortage of Swiss francs.
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Consider a two-person, two-strategy game in which only pure strategies are played. Such a game must have at least one
a. Nash equilibrium. b. player with a dominant strategy. c. Pareto-optimal outcome. d. outcome that is both a Nash equilibrium and Pareto optimal.
The above table gives the demand and supply schedules for Blu-ray discs. Based on the table, the equilibrium quantity and price of a Blu-ray discs is
A) 28,000 and $12. B) 20,000 and $20. C) 16,000 and $24. D) 16,000 and $16.
In the exporting country, an export subsidy will
A) help consumers and raise the overall economic welfare of the exporting country. B) hurt consumers but raise the overall economic welfare of the exporting country. C) hurt consumers and lower the overall economic welfare of the exporting country. D) help consumers but lower economic welfare of the exporting country. E) help consumers and have no effect on the economic welfare of the exporting country.
The banking system in the U.S. is based on:
A) 100 percent reserve banking. B) fractional reserve banking. C) 0 percent reserve banking. D) none of the above.