Suppose the target exchange rate set by the Fed is 100 yen per dollar. If the demand for dollars temporarily increases, to maintain the target exchange rate, the Fed can
A) sell dollars.
B) buy dollars.
C) violate interest rate parity.
D) violate purchasing power parity.
A
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Game theory may be used to solve problems of interdependent decision making by large firms
a. True b. False Indicate whether the statement is true or false
For a monopolist, marginal revenue ________ for all units of output except the first unit.
A. is greater than the price of output B. is less than the price of output C. is equal to the price of output D. may be either greater than or less than the price of output
Subsidiarity requires nations to give up some of their national sovereignty
Indicate whether the statement is true or false
For years, your neighbor insisted she had no desire to own a computer. Recently, however, she purchased one and says she did so because all her relatives have computers and she wants to exchange e-mail with them. Your neighbor's behavior is an example of
A) a switching cost. B) the impact of negative market feedback. C) limited-pricing behavior. D) a network effect.