A nation's monetary base changes when:
a. Funds cross our imaginary line.
b. The federal government increases spending.
c. Central banks swap currencies with each other.
d. The central bank reduces the reserve requirement.
e. None of the above.
.A
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Exercising the principle of comparative advantage between nations primarily involves
a. specialization. b. transportation costs. c. currency exchange rates. d. domestic income tax rates.
Which of the following statements is correct?
A) The markup pricing rule that is derived from the rule for profit maximization can be used as a substitute for determining the profit-maximizing level of output by equating marginal revenue and marginal cost. B) It is reasonable to assume that a profit-maximizing firm will never operate in the inelastic portion of its demand curve. C) The ability of a profit-maximizing firm to mark up price above average cost is unaffected by the price elasticity of demand for the firm's output. D) The markup factor and the price elasticity of demand are positively related, i.e., as the price elasticity of demand increases, the markup factor that the profit-maximizing firm can apply to its marginal cost in setting price increases as well.
Bushels Demanded Per MonthPrice Per BushelBushels Supplied Per Month45$57750473563686126167157Refer to the above data. Equilibrium price is:
A. $3. B. $1. C. $2. D. $4.
In general, monetary policy has a ________ response lag than fiscal policy and a ________ implementation lag.
A. longer; shorter B. shorter; shorter C. longer; longer D. shorter; longer