Strategic currency stabilization:
A. involves frequent exchange rate intervention.
B. is successful only if the government does not attempt to affect market expectations.
C. can be successful only if governments possess large amounts of official reserves.
D. involves carefully-timed exchange rate intervention.
Answer: D
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If nominal GDP is $8 trillion and real GDP is $10 trillion, then the GDP deflator is
a. 80, and this indicates that the price level has decreased by 20 percent since the base year. b. 80, and this indicates that the price level has increased by 80 percent since the base year. c. 125, and this indicates that the price level has increased by 25 percent since the base year. d. 125, and this indicates that the price level has increased by 125 percent since the base year.
When banks offer checking accounts, they are issuing a(n):
A. financial asset that cannot function as money. B. financial liability. C. financial asset that functions as money. D. IOU.
Refer to the information provided in Table 3.1 below to answer the question(s) that follow. Table 3.1Price per PizzaQuantity Demanded (Pizzas per Month)Quantity Supplied (Pizzas per Month)$31,200 600 61,000 700 9 800 80012 600 90015 4001,000Refer to Table 3.1. In this market there will be an excess supply of 600 pizzas at a price of
A. $3. B. $6. C. $12. D. $15.
Risk is shifted to the owners of a firm. In return they receive
A) normal wages. B) residual income. C) normal profit. D) marginal profit.