In a "crawling peg" regime, ________
A) the value of the currency is fixed to a basket of commodities
B) higher inflation is permitted
C) several anchor currencies are used in succession
D) the currency may gain value, but cannot lose value
B
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Suppose that the Fed purchases $1,000,000 worth of bonds and that the reserve ratio is 25 percent. Then, the maximum potential expansion of deposits is
A) $4,000,000. B) $400,000. C) $25,000,000. D) $10,000,000.
Why must the M2 measure of the money supply always be larger than the M1 measure?
What will be an ideal response?
People expect that the El Niño effect will cause drought in Australia in coming years. If most Australian firms expect their profits will fall during the next five years, Australia's ________ this year
A) aggregate demand will increase B) long-run aggregate supply will increase C) aggregate demand will decrease D) short-run aggregate supply will increase
What is the difference between between total costs, variable costs, and fixed costs?
What will be an ideal response?