A fixed exchange rate policy:
A. imports monetary policy.
B. strengthens domestic interest rate policy.
C. will likely make domestic inflation more volatile.
D. decreases central bank policy accountability and transparency.
Answer: A
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A price ceiling in the market for gasoline that is below the equilibrium price will lead to
A) the quantity demanded of gasoline exceeding the quantity supplied. B) an increase in the demand for gasoline. C) a decrease in the supply of gasoline. D) the quantity supplied of gasoline exceeding the quantity demanded. E) no change in the market since the price ceiling is below the equilibrium price.
What do economists mean when they discuss "scarcity"?
What will be an ideal response?
Both price supports and a price floor can
A) create a deadweight loss. B) decrease output below the equilibrium quantity. C) decrease the price below the equilibrium price. D) increase consumer surplus. E) have no effect on producer surplus.
The above table gives data for a hypothetical nation. Gross domestic product is
A) $4,049 billion. B) $4,079 billion. C) $4,054 billion. D) $4,339 billion.