The Cournot model is based on two firms that produce identical products and collude to set prices.
Answer the following statement true (T) or false (F)
False
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Under the Bretton Woods system, the United States was designated as the
A) reserve-currency country. B) fixed-rate country. C) par-standard country. D) dollar-standard country.
Suppose there are two members of the U.S. Congress who were once economics professors. Why is it important to be able to distinguish their positive from their normative statements about economic policy? a. Their positive statements help us understand the economy's response to a particular policy, while their normative statements reflect their value judgments. b. Their positive statements help
us understand the good results of a policy change, and their normative statements help us understand the negative results. c. We really do not have to worry about them since trained economists never make normative statements. d. Economists are always making assumptions, and policy should not be based on assumptions.
The limits of the terms of trade between two countries are determined by those countries' opportunity costs of production
a. True b. False
Suppose the Federal Reserve raised the required reserve rate. This would lead to an increase in _____.
a. interest rates b. inflation c. deficits d. aggregate demand