The key danger facing a country with an exchange rate peg is ________
A) loss of credibility
B) loss of export markets
C) monetary policy mistakes
D) capital controls
A
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If there is a large increase in the price of oil and the Fed wishes to maintain stable output, which of the following should it do?
a. Do nothing, because the self-correcting mechanism will adjust the economy b. Sell bonds in the open market c. Wait, because output seldom changes when there is an increase in the price of oil d. Encourage firms to not adjust the wages they pay e. Buy bonds in the open market
Economic theory predicts that the price of a depletable resource will rise as it becomes more scarce
a. True b. False Indicate whether the statement is true or false
Consider the monopoly in the figure below with price regulated at $20 per unit. The regulated price will result in a: 
A. surplus of 18 units. B. shortage of 18 units. C. shortage of 3 units. D. surplus of 3 units.
If a firm raises funds by recruiting additional owners to invest in the firm
A) the firm's financial capital would increase. B) the firm's financial capital would decrease. C) the firm's stock price would decrease. D) the firm's net worth would decrease.