The U.S. dollar bills you sometimes have in your wallet are:
A. assets of the Federal Reserve.
B. your liabilities if you hold that note.
C. liabilities of the Federal Reserve until it is spent.
D. liabilities of the Federal Reserve.
Answer: D
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When a country allows trade and becomes an exporter of a good,
a. domestic producers gain and domestic consumers lose. b. domestic producers lose and domestic consumers gain. c. domestic producers and domestic consumers both gain. d. domestic producers and domestic consumers both lose.
The accompanying figure shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist.
At this monopolist's profit-maximizing level of output, it:
A. earns an economic profit of $16 per day. B. earns an economic profit of $64 per day. C. incurs an economic loss of $16 per day. D. incurs an economic loss of $64 per day.
Contractionary monetary policy and expansionary fiscal policy both reduce net exports in an open economy
Indicate whether the statement is true or false
Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market?
a. U.S. demand for foreign exchange, in general, and British pounds, in particular, will increase. b. U.S. demand for foreign exchange, in general, and British pounds, in particular, will decrease. c. U.S. demand for British pounds will increase, but the demand for foreign exchange will probably decrease. d. U.S. demand for British pounds will decrease, but the demand for foreign exchange will probably increase. e. There is no effect on foreign exchange.