If a country sets a pegged exchange rate that is below the equilibrium exchange rate, how can the country maintain the peg?
A) by selling surplus domestic currency at the pegged rate
B) by purchasing surplus domestic currency at the pegged rate
C) by decreasing the pegged exchange rate
D) by purchasing surplus domestic currency at the equilibrium exchange rate
A
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If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03, the money multiplier is
A) 5.22. B) 6.67. C) 0.76. D) 4.46. E) 3.23.
A real estate salesperson sells a house in 1999 that was built in 1990. How does this transaction get counted in the GDP statistics?
What will be an ideal response?
If the United States cuts its government budget deficit, what impact would there be on the IS curve?
A) It would shift right due to higher levels of total spending. B) It would shift left due to lower levels of total spending. C) It would shift left because of lower levels of total spending, and it would shift right if U.S. interest rates decline due to lower borrowing. D) It would shift left because of higher nominal and real interest rates due to increased borrowing.
For which pair of firms would a merger be horizontal?
A. Avis Car Rentals and United Airlines B. Nike and Starbucks C. Barnes and Noble and Wordsworth Booksellers D. US Steel and Boeing