Referring to Figure 19.1, Mexican goods will become more expensive in the United States if the exchange rate goes from ________ to ________ pesos to the dollar
A) 10; 13
B) 11; 13
C) 12; 11
D) 12; 13
C
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A financial contract in which a bank agrees to sell the expected future returns from an underlying bank loan to a third party is referred to as:
A) loan sale B) loan commitment C) credit rationing D) microlending
When the production of a good involves several inputs, an increase in the cost of one input will usually cause total costs to
A) rise more than in proportion. B) rise less than in proportion. C) remain unchanged. D) rise by the exact amount of the input price increase.
Federal Reserve Notes:
a. Are assets in the balance sheet of the Federal Reserve. b. Enter the economy when U.S. financial institutions demand cash from the Federal Reserve. c. Enter the banking system every time the Federal Reserve sells government securities. d. All the above are true. e. None of the above is true.
Demand-pull inflation is due to:
A. minimum wage laws. B. labor cost increases. C. excess total spending. D. tax increase.