If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries.
B. completely ineffective on the exchange rate.
C. likely to have a much greater impact on the exchange rate than in developed countries.
D. likely to have roughly the same impact on the exchange rate as in developed countries.
Answer: C
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Refer to Figure 12-6. Which of the following statements is true?
A) Jason should produce where MC equals $3 (point d) where he will minimize his losses. B) Jason cannot earn a profit from selling any number of apples. C) Jason should produce where MC equals $3 (point d) where he will maximize his profit. D) Jason should produce where the distance between MC and his demand curve is greatest (point b).
Refer to the following graph. A decrease in demand is reflected as
a. a shift of the demand curve from D to D1.
b. a shift of the demand curve from D to D2.
c. movement from point B to A along demand curve D.
d. movement from point A to C when the price is $12.50.
"Crowding out" refers to the decrease in ________ that may result from an increase in government spending
A) private investment B) imports C) private saving D) all of the above E) none of the above
The Fed will make a discount loan to a bank during a crisis:
A. but if the bank doesn't have collateral the interest rate is higher. B. no matter what condition the bank is in. C. only if the bank would fail without the loan. D. only if the bank is sound financially and can provide collateral for the loan.