Which one of the following is/are INCORRECT? An argument against floating exchange rates is that
A) a fixed rate automatically prevents instability in the domestic money market from affecting the economy if shocks come from home domestic money market.
B) a fixed rate might become unpredictable, complicating economic planning.
C) a rise in money demand under a fixed exchange rate would have no effect on the exchange rate and output.
D) a fixed rate functions within the price-specie-flow mechanism and maintains a balance of payments equilibrium.
E) a fixed rate automatically prevents instability in the economy from output market shocks.
E
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The circular flow diagram shows that
A) households spend all their income on goods and services. B) the value of total income is equal to the total value of expenditures on final goods and services. C) firms pay households wages, and households receive transfer payments from firms. D) GDP will be less than the total value of expenditures on final goods and services in the economy.
A decrease in the interest rate, other things constant, will: a. shift the demand for loanable funds curve to the right. b. shift the demand for loanable funds curve to the left. c. increase the quantity of loanable funds demanded. d. increase the quantity of loanable funds supplied
e. shift the supply of loanable funds curve to the right.
The Consumer Price Index (CPI) excludes goods imported from other countries and consumed by residents of the United States
a. True b. False
Refer to the information provided in Table 25.7 below to answer the question(s) that follow.Table 25.7
Refer to Table 25.7. The net worth of Great Gazoo Bank is
A. $100,000. B. $300,000. C. $500,000. D. $900,000.