If a country has a fixed exchange rate, it:
A. has a value that is set by the government.
B. helps attract foreign investment and gives businesses that depend on overseas trade more confidence to invest.
C. allows for more predictability and stability.
D. All of these statements are true.
Answer: D
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Which of the following would NOT shift the demand curve for turkey?
A) an increase in income B) a decrease in the price of ham C) a change in people's preferences for turkey D) a change in the price of a turkey
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a variable cost for this company?
A. Employee wages B. The cost of the factory C. The rope-cutting machine D. All of these expenses would be included in variable costs.
Which of the following is not a tool of monetary policy?
A. Open-market operations. B. Changes in banking laws. C. Changes in the rate of interest paid on reserves held at Federal Reserve Banks. D. Changes in the reserve ratio.
An industry is in ________ if firms have no incentive to enter or exit in the ________ run.
A. disequilibrium; long B. disequilibrium; short C. equilibrium; long D. equilibrium; short