The dollar is regarded as the "safe haven" currency; investors flock to it when they are worried about the outlook for the global economy
Fears were at their greatest in late 2008 and early 2009 after the collapse of the Lehman Brothers investment bank in September 2008. As investors flocked to the dollar A) the demand for dollars increased and the exchange rate increased.
B) the demand for dollars decreased and the exchange rate decreased.
C) the supply of dollars increased and the exchange rate decreased.
D) the supply of dollars decreased and the exchange rate increased.
A
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Sam Lewis owns a firm in New York City's garment district. If Sam keeps adding workers to use the same number of sewing machines, eventually the workplace will become so crowded that workers will get in each other's way. At this point
A) Sam should begin using a division of labor in his business. B) Sam's business will be in violation of safety rules that have been established by the New York City government. C) the marginal product of labor in Sam's business would be negative and his total output would decrease. D) Sam should encourage his workers to share their sewing machines.
All else equal, a forecast regression with a R2 of ________ is more valuable than a forecast regression with a R2 of ________.
A) 0.85; 0.95 B) 0.50; 0.80 C) 0.80; 0.50 D) 0.75; 0.90
The earnings of all employees in a competitive economy would be equal if
a. workers were perfectly mobile among jobs. b. all jobs were equally attractive. c. all of the above are true. d. all individuals were homogeneous.
Some economists object to having the Fed concentrate solely on price stability because it would
A) make stabilizing the economy more difficult. B) lessen its credibility. C) privatize the Federal Reserve. D) free the Fed from political pressure.