What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in the foreign exchange market and the central bank intervenes to offset the excess? Assume the M2 money multiplier is 3
a. The Canadian M2 money supply falls by 300 million euros worth of Canadian dollars.
b. The Canadian M2 money supply rises by 300 million euros worth of Canadian dollars.
c. The Canadian M2 money supply might fall or rise.
d. The Canadian M2 money supply rises by 100 million euros worth of Canadian dollars.
e. The Canadian M2 money supply falls by 100 million euros worth of Canadian dollars.
.A
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If a $1 sales tax is imposed on the sale of a CD, and neither the demand nor the supply is perfectly elastic or perfectly inelastic, then the price of a CD paid by consumers will
A) increase by $1 and fewer CDs will be bought. B) increase by less than $1 and fewer CDs will be bought. C) not change and the same number of CDs will be bought. D) increase by $1 and the same number of CDs will be bought. E) increase by more than $1 and fewer CDs will be bought.
As a consumer moves along an indifference curve and decreases consumption of the good on the x-axis, the consumer needs ________ of the good on the y-axis to give up an additional unit of the good on the x-axis
A) less and less B) more and more C) none D) a constant amount
Consider two coupons: one offers 10 percent off a pair of jeans that costs $100, and the other offers 50 percent off a pair of sunglasses that costs $20. Using either coupon requires driving to the shopping mall across town. According to the Weber-Fechner law, which coupon will people tend to perceive as being more valuable?
A. The coupon for the jeans since $100 is greater than $20. B. They will be seen as equally valuable since both lead to a savings of $10. C. The coupon for the sunglasses since 50 percent is greater than 10 percent. D. Neither coupon will be of value to anyone since both require driving across town.
Ceteris paribus, tariffs and nontariff barriers on imported factor inputs result in
A. An increase in the price level and a decrease in unemployment. B. A decrease in the price level and a decrease in unemployment. C. An increase in the price level and an increase in unemployment. D. A decrease in the price level and an increase in unemployment.