Which of the following could have led to the shifts illustrated in the figure above?
i. The U.S. exchange rate was expected to depreciate between 2001 and 2009.
ii. The U.S. exchange rate was expected to appreciate between 2001 and 2009.
iii. The U.S. interest rate rose relative to interest rates in other countries between 2001 and 2009.
A) i only B) ii only C) iii only D) i and iii E) ii and iii
A
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When the Federal Reserve buys $200 worth of government securities, the money supply
A) rises by $200. B) rises by more than $200. C) falls by $200. D) falls by more than $200.
Government has the power to reduce the _____ associated with air pollution by automobiles because it can force changes in car design, can impose taxes on drivers, and has the power to punish those who fail to comply
a. private cost b. transaction cost c. opportunity cost d. positive externality
Explain whether uncertainty should cause policy makers to do more or do less to stabilize the economy
What will be an ideal response?
When MR < MC for a firm, the firm should
A) reduce its level of output. B) stay at the same level of output. C) stop producing. D) increase output, unless P < AVC.