If central banks were no longer obliged to intervene in currency markets to fix exchange rates, governments would be able to use monetary policy to reach
A) internal balance.
B) external balance.
C) internal and external balance.
D) internal but not external balance.
E) external but not internal balance.
C
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According to Say's law, there cannot be overproduction of goods and services because:
A. planned aggregate expenditures sometimes fall short of total output. B. prices and wages are "sticky" or inflexible in the downward direction. C. demand creates its own supply. D. supply creates its own demand.
The Industrial Revolution and modern economic growth resulted in:
A. the average human lifespan more than doubling. B. a major population shift from urban to rural areas. C. increased production by local craftsmen. D. all of these.
Refer to the information provided in Figure 3.10 below to answer the following question(s).
Figure 3.10Refer to Figure 3.10. A decrease in quantity supplied is represented by a movement from
A. S2 to S1. B. S2 to S3. C. Point B to Point A along supply curve S2. D. Point B to Point C along supply curve S2.