If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves
A) are horizontal.
B) intersect each other.
C) are vertical.
D) have constant slope.
D
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If exchange rates are allowed to fluctuate freely and the US demand for Japanese yen increases which of the following will happen?
a. the US balance of trade deficit will worsen in the long run b. Americans will have to pay more for Japanese goods c. It will be more expensive for the Japanese to buy American real estate d. the dollar will appreciate e. more Americans will want to travel to Japan
The money supply will tend to fall when which of the following occurs?
A) a central bank sale of bonds B) a decrease in the ratio of reserves to deposits C) a shift in public preferences away from currency to checkable deposits D) all of the above E) none of the above
To lower the federal funds rate, the Fed conducts an open market ________ of securities which ________
A) purchase; increases the demand for reserves B) sale; increases the supply of reserves C) purchase; decreases the demand for reserves D) sale; increases the demand for reserves E) None of the above answers is correct.
Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. At a price of $55, the quantity demanded in the market would be
A) 42 oz. B) 136 oz. C) 178 oz. D) 233 oz.