The fact that at the competitive equilibrium nobody can be made better off without making someone else worse off implies that
A) the equilibrium is pareto efficient.
B) the equilibrium is not pareto efficient.
C) the prices need to adjust further.
D) further gains from trade are possible.
A
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Holding all else constant, a decrease in the real interest rate on Mexican assets will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
The monetary base is the sum of
A) coins, Federal Reserve notes, and banks' reserves at the Fed. B) Federal Reserve notes, Treasury deposits at the Fed, banks' reserves at the Fed, and coins. C) coins, Federal Reserve notes, and individuals' deposits at the Fed. D) coins, Federal Reserve notes, and gold at the Fed. E) Federal Reserve notes and banks' reserves at the Fed.
A decrease in the price of a complement shifts the demand curve to the
a. right b. left c. it does not change the demand curve d. none of the above
An international organization providing low-cost loans and grants to developing nations is the
a. International Monetary Fund. b. Group of Seven. c. World Bank. d. United Nations.