A fiduciary monetary standard exists when the value of a currency
A. cannot be determined.
B. increases with inflation.
C. depends upon the public's confidence that the currency can be exchanged for goods and services.
D. is convertible to a fixed quantity of gold.
Answer: C
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Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
a. The output of the monopolist will be too large and its price too high. b. The output of the monopolist will be too large and its price too low. c. The output of the monopolist will be too small and its price too high. d. The output of the monopolist will be too small and its price too low.
Suppose there are two countries that are identical in every way with the following exception: Country A has a lower depreciation rate (?) than country B. Given this information, we know with certainty that
A) the growth rate will be the same in the two countries. B) the growth rate will be higher in A than in B. C) K/N will be higher in B. D) Y/N will be higher in B.
Discuss the short-run and long-run views of PPP. Make sure that you explain the underlying adjustment mechanism and theoretical reasoning for each view when answering the question
Which view, do you think, is more likely to represent the real world?
Which of these firms have a low supplier power?
a. Pharmaceutical firms b. Semiconductor firms c. Car Dealerships d. Software firms