As the price level rises, the exchange rate
a. falls, so exports rise and imports fall.
b. falls, so exports fall and imports rise.
c. rises, so exports rise and imports fall.
d. rises, so exports fall and imports rise.
d
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Refer to the figure below. Based on the diagram, the nominal interest rate equals ________ and the money supply equals ________. 
A. 7%; 300 B. 5%; 500 C. 1%; 500 D. 3%; 700
Typically, a bank's largest asset is its
A) holdings of securities. B) loans. C) reserves. D) deposits of its customers.
The argument that suggests that regulators balance the interests of firms, consumers, and legislators is called
A) the capture hypothesis. B) the creative response theory. C) the share-the-gains, share-the-pains theory. D) the theory of optimal regulation.
After the first unit, a monopolist's marginal revenue is less than the price it charges because to sell an additional unit it needs to lower its price.
Answer the following statement true (T) or false (F)