Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: The president of the United States decides to support the dollar by purchasing dollars with U.S. holdings of foreign currencies.
A. a.
B. b.
C. c.
D. d.
Answer: D
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A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a
A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond.
Which of the following factors influence the appropriate value for the social rate of discount used in NPV analysis of stock externalities?
A) Expected rate of economic growth B) Extent of social risk aversion C) The society's rate of time preference D) all of the above
The absolute value of the price elasticity of demand at the midpoint of a linear demand curve is always
a. greater than one b. less than one c. one d. zero e. infinity
Collusion:
A. is observed, but economists cannot theoretically model it. B. occurs only when no dominant strategy is present. C. is a theoretical concept that is rarely observed. D. is a cooperative outcome between competitors.