If a country that fixes its exchange rate has an undervalued exchange rate, then it will ________ reserves, unless it ________ its money supply to the appropriate level.
A. gain; increases
B. lose; increases
C. gain; decreases
D. lose; decreases
Answer: A
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Mass production is possible only if there is also __________________________.
Fill in the blank(s) with the appropriate word(s).
Using demand and supply curves for the Japanese yen based on the $/¥ price for yen, an increase in US INFLATION RATES would
a. Decrease the demand for yen and decrease the supply of the yen. b. Increase the demand for yen and decrease the supply of the yen. c. Increase the demand and increase the supply of yen. d. Decrease both the supply and the demand of yen. e. Have no impact on the demand or supply of the yen.
Which of the following is considered a service in the calculation of GDP?
A. Manufacturing automobiles. B. Tax preparation. C. Constructing new homes. D. Manufacturing reclining chairs.
What price should a firm charge for a package of two shirts given a marginal cost of $4 and an inverse demand function P = 8 ? 2Q by the representative consumer?
A. $8 B. $4 C. $16 D. $12