If the U.S. purchases oil from Venezuela, what is the effect in the foreign exchange market?
a. It will increase demand for U.S. dollars.
b. It will decrease demand for U.S. dollars.
c. It will increase supply of U.S. dollars.
d. It will decrease supply of U.S. dollars.
c
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Use the figure below to answer the following question.
If a price ceiling in this market is set at P2, then
A. deadweight loss equals area d. B. no deadweight loss occurs. C. deadweight loss equals area h. D. more information is needed to find deadweight loss.
As capital deepening occurs, there will be increased real wages and economic growth
Indicate whether the statement is true or false
Why might it be in the direct economic interest of the United States to finance rain forest conservation programs in the Amazon?
What will be an ideal response?
The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009,
a. expanded the reserves available to the banking system, leading to a rapid increase in the M1 money supply as banks used the reserves to extend additional loans. b. reduced the reserves available to the banking system, leading to a sharp reduction in outstanding loans and a decline in the M1 money supply. c. expanded the reserves available to the banking system, but the M1 money supply increased slowly because the banks enlarged their excess reserves. d. reduced the reserves available to the banking system, leading to a substantial increase in outstanding loans and the M1 money supply.