Why is per-capita U.S. currency demand so large? Who is holding large amounts of U.S. currency and why are they doing so? Should U.S. policymakers be concerned about this? Why?
What will be an ideal response?
Currency demand is large mostly because foreigners hold many dollars. They do so because of inflation or political instability in their countries. Policymakers shouldn't be very concerned, since foreigners' dollar holdings represent an interest-free loan to the United States. However, a cause for concern may be that fluctuations in our money supply may reflect conditions abroad that are unrelated to the U.S. economy.
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Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ which lead to ________ in the price of jelly and ________ in the quantity of jelly
A) demand for jelly; a decrease; a decrease B) supply of jelly; a decrease; an increase C) supply of jelly; an increase; a decrease D) demand for jelly; an increase; an increase
The figure above shows a monopoly firm's demand curve. At point t
A) demand is elastic. B) demand is unit elastic. C) demand is inelastic. D) total revenue is at a minimum.
Restaurants cluster together. That is, on one corner, there may be four similar fast-food restaurants. How can this be explained using a location game theory model?
What will be an ideal response?
All of the following are regulatory agencies EXCEPT
A) the National Rifle Association. B) the Environmental Protection Agency. C) the Food and Drug Administration. D) the Occupational Safety and Health Administration.