Under a fixed exchange rate? system, the central bank of a country experiencing a balance of payments deficit? will:
A) increase the supply of the domestic currency to prevent currency depreciation.
B) increase the demand for the domestic currency to prevent currency depreciation.
C) increase the supply of domestic currency to prevent a currency appreciation.
D) increase the demand for domestic currency to prevent a currency appreciation.
Ans: B) increase the demand for the domestic currency to prevent currency depreciation.
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The Federal Reserve has ________ regional Federal Reserve Banks and ________ members of the Board of Governors
A) 12; 12 B) 12; 7 C) 7; 12 D) 7; 7
"Cream skimming" usually results in
a. cross-subsidization of markets. b. subsidies to rural consumers of the service. c. regulations to provide universal service. d. monopoly.
In response to the economic downturn, the federal government enacted a fiscal stimulus bill with funding in excess of $700 billion
a. True b. False Indicate whether the statement is true or false
You are the manager of a firm that sells its product in a competitive market at a price of $60. Your firm's cost function is C = 50 + 3Q2. The profit-maximizing output for your firm is:
A. 40. B. 20. C. 10. D. 30.