Refer to the table below. Under a flexible exchange rate system, what will be the rate of exchange for one euro?
The table below shows the supply and demand schedules for the European euro.
A. $0.80
B. $0.90
C. $1.00
D. $1.10
B. $0.90
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There is $5,000,000 of currency in Econland, all held by banks as reserves. The public does not hold any currency. If the banks' desired reserve/deposit ratio is 0.25, then the money supply equals:
A. $20,000,000 B. $10,000,000 C. $6,250,000 D. $5,000,000
The observed change in the reserves of copper, lead, and zinc between 1960 and 1990 was most likely caused by
a. low prices discouraging exploration for new reserves. b. a slowdown in demand growth. c. high prices that stimulated exploration. d. the discovery of substitutes.
If U.S. net exports are negative, then net capital outflow is
a. positive, so foreign assets bought by Americans are greater than American assets bought by foreigners. b. positive, so American assets bought by foreigners are greater than foreign assets bought by Americans. c. negative, so foreign assets bought by Americans are greater than American assets bought by foreigners. d. negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.
A computer manufacturer wants its competitors to have a barrier to entry so it can have a monopoly. Which of the following actions would accomplish this goal?
a. producing more computers than any other manufacturer b. producing computers at a lower cost than most manufacturers c. buying the only land where the silicone used in new chips is found d. sharing its technological advancements with competitors