Which of the following is not a reason why residents of other countries desire to acquire dollars?
a. foreigners need dollars to purchase U.S. goods and services
b. dollars can be used as a safe way of storing value when the foreigner's own currency is unstable
c. dollars are accepted as an international medium of exchange
d. dollars can be used for cash gifts from foreigners to U.S. friends and relatives
e. dollars are the only currency accepted in international transactions
E
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A) the gain or pleasure that it brings. B) not measurable on the margin. C) purely objective and measured in dollars. D) the value of its opportunity cost. E) measured by what must be given up to get one more unit of the activity.
Some people argue that protection discourages dependency. Explain this argument
What will be an ideal response?
An essential piece of the liquidity preference theory is the demand for money
a. True b. False Indicate whether the statement is true or false
A temporary supply shock, such as a bumper crop, would
A. shift the FE line to the left and shift the IS curve up and to the right. B. shift the FE line to the left and leave the IS curve unchanged. C. shift the FE line to the right and leave the IS curve unchanged. D. have no effect on the FE line.