The Fed wants to keep the dollar at 0.80 euros per dollar. If the demand for dollars increases,
A) the Fed sells dollars to increase the supply of dollars and maintain the exchange rate.
B) the Fed conducts persistent intervention on one side of the market.
C) the Fed buys dollars to increase the supply of dollars and maintain the exchange rate.
D) the Fed buys dollars to decrease the supply of dollars and maintain the exchange rate.
E) the Fed sells dollars to decrease the supply of dollars and maintain the exchange rate.
A
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Because prices are sticky in the short-run, when the Federal Reserve raises the federal funds rate
A) nominal interest rates fall. B) real interest rates rise. C) inflation falls. D) real interest rates fall.
A scatterplot
A) shows how Y and X are related when their relationship is scattered all over the place. B) relates the covariance of X and Y to the correlation coefficient. C) is a plot of n observations on Xi and Yi, where each observation is represented by the point (Xi, Yi). D) shows n observations of Y over time.
Businesses do all of the following except:
A. demand goods and services from households in the goods market. B. pay taxes to the government. C. demand labor services from households in the factor market. D. supply goods and services to the government in the goods market.
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The average product of labor with four workers is
A. 3. B. 3.5. C. 4. D. 14.