In the early 1970s, in an attempt to solve the problem of the overvalued U.S. dollar, world leaders
a. increased the price of gold in terms of other currencies
b. appreciated the dollar, which made foreign exchange cheaper to U.S. residents
c. appreciated the dollar, which made foreign exchange more expensive to U.S. residents
d. devalued the dollar, which made foreign exchange cheaper to U.S. residents
e. devalued the dollar, which made foreign exchange more expensive to U.S. residents
E
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What is an individual transferable quota (ITQ)?
What will be an ideal response?
________ inflation is more stable than __________ inflation, because it ____________.
A. Core; headline; excludes food and gasoline prices B. Headline; core; excludes food and gasoline prices C. Core; headline; does not exclude food and gasoline prices D. Headline; core; does not exclude food and gasoline prices
If the Fed sells bonds, the short run impact of this policy will tend to include: a. an increase in the inflation rate. b. a reduction in unemployment
c. an increase in real output. d. an increase in real interest rates.
Answer the following questions true (T) or false (F)
1. Allocative efficiency is achieved in an industry when firms supply those goods and services that provide consumers with a marginal benefit equal to the marginal cost of producing those goods and services. 2. A perfectly competitive firm in long-run equilibrium produces output at the lowest possible average total cost.