If a central bank does not want to see its currency ________ in value, it may pursue contractionary monetary policy to raise the domestic interest rate, thereby ________ its currency
A) fall; strengthening
B) fall; weakening
C) rise; strengthening
D) rise; weakening
A
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A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered
A) cyclically unemployment. B) frictionally unemployment. C) seasonally unemployment. D) structurally unemployment.
The daily reserve supply curve is:
A. vertical. B. horizontal. C. upward sloping. D. downward sloping.
During the 1990s positive technological change in the production of chicken caused the price of chicken to fall. Holding everything else constant, how would this affect the market for pork (a substitute for chicken)?
A) The supply of pork would increase and the equilibrium price of pork would decrease. B) The demand for pork would decrease and the equilibrium price of pork would decrease. C) The demand for pork would increase because consumers could afford to buy more chicken and pork. D) The demand for pork would decrease and the equilibrium price of pork would increase.
Refer to the data for a nondiscriminating monopolist. This firm will maximize its profit by producing:
A. 3 units.
B. 4 units.
C. 5 units.
D. 6 units.