Under a flexible exchange rate, an increase in the domestic money supply leads to
A) a devaluation of the domestic currency.
B) a revaluation of the domestic currency.
C) a depreciation of the domestic currency.
D) an appreciation of the domestic currency.
C
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Being a very careful apartment renter (always locking the door, making sure the stove and iron are off when leaving, etc.) is an example of ________.
A) moral hazard B) certification C) a hidden characteristic D) screening
Which of the following is false? a. Property rights provide the rules of the economic game
b. Well defined property rights give individuals the incentive to use their property efficiently. c. Owners with property rights have an incentive to conserve their property. d. Owners have no incentive to care what values others place on what they own.
Aggregate demand is the total demand for
a. all intermediate and final goods. b. all monetary investments. c. real and financial investments. d. all final goods and services.
Government regulations to insure the safety of bank deposits and to control the money supply include
a. limitations on the types and quantities of assets in which banks may invest. b. elimination of the need for required reserves. c. setting interest rate ceilings on savings and money market deposit accounts. d. All of the above are correct.