Under the Bretton Woods system, a country could alter its exchange rate
A. by changing its value relative to gold.
B. whenever it determined that there was a fundamental disequilibrium.
C. only when the IMF permitted due to a fundamental disequilibrium.
D. under no circumstances.
Answer: C
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Why are social institutions such as firms, markets, property rights, and money necessary?
What will be an ideal response?
Most individuals borrow:
A. using a financial intermediary because it lowers the cost of borrowing. B. using a financial intermediary, but would save money if they financed directly. C. without using financial intermediaries, preferring credit cards. D. directly without the use of a financial intermediary.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
"Wants" as an economic concept includes
A) both material and nonmaterial desires. B) only the purchase of necessary basic goods. C) only the desire for luxury goods. D) only goods and services that consumers need but cannot afford to buy.