If monetary policy must be used to set the market equilibrium value of the exchange rate equal to the official value, it:
A. will increase the rate of growth in the economy.
B. will be unable to stabilize the market equilibrium value of the exchange rate.
C. will simultaneously stabilize the domestic economy.
D. is no longer available to stabilize the domestic economy.
Answer: D
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How did the increased speed of computers affect the labor market for computer game designers?
A. Decreased wages and increased employment. B. Increased wages and decreased employment. C. Increased wages and increased employment. D. Decreased wages and decreased employment.
To maintain a price below the equilibrium price,
a. demand must increase. b. supply must increase. c. the government must set a ceiling price. d. supply must decrease.
A sharp depreciation of the domestic currency after a currency crisis leads to
A) higher inflation. B) lower import prices. C) lower interest rates. D) decrease in the value of foreign currency-denominated liabilities.
Table 7-4 ? 6 346 490 600 692 775 846 ? 5 316 448 548 632 705 775 ? 4 282 400 490 564 632 692 CAPITAL 3 245 346 423 490 548 600 ? 2 200 282 346 400 448 490 ? 1 141 200 245 282 316 346 ? 0 1 2 3 4 5 6 ? LABOR ? ? ? ? ? Table 7-4 shows a production relationship. Assuming the capital stock is fixed at three units and the cost per day of labor is $65, what is the most labor that it is efficient to hire if the product price is $1 per unit?
A. 2 B. 3 C. 4 D. 5