Under a floating exchange rate, the exchange rate
A) is determined by the interaction of supply of the currency and demand for the currency.
B) is controlled by central bank intervention.
C) is pegged against the euro.
D) will change whenever the price of gold changes.
A
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Why are graphs such an important tool in economics?
If unemployment benefits became more generous it would be likely to _____ frictional unemployment and _____ the natural rate of unemployment:
a. Increase; increase b. Increase; not change c. Not change; increase d. Increase; decrease
Silver Mountain Bank makes a loan of $35,000 to Klaus, who pays his contractor, Yasmin. Yasmin deposits the $35,000 into her account at Clearlake Bank. Clearlake then uses all the resulting excess reserves to make a loan to Miguel, who deposits it into his own bank account. Assuming the required reserve ratio for all the banks is 15 percent, how much money has been created as a result of these transactions?
a. $64,750 b. $29,750 c. $35,000 d. $5,250
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.