The German central bank gained international reserves in the early 1970s because it sold ________ to prevent mark ________
A) marks; appreciation
B) dollars; appreciation
C) marks; depreciation
D) dollars; depreciation
A
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In the figure above, if the MPC increased, the aggregate expenditure lines would ________ and the multiplier would ________ in value
A) not change; rise B) become steeper; fall C) not change; fall D) become steeper; rise E) become less steep; rise
In deciding on how to spend their resources, consumers try to
A. maximize expenditures. B. choose the combination of goods that yield the highest level of personal satisfaction. C. choose the combination of goods that costs the least. D. maximize profit.
Which of the following is likely to result in a higher equilibrium price? a. An increase in both demand and supply
b. A decrease in both demand and supply. c. An increase in demand and a decrease in supply. d. A decrease in demand and an increase in supply.
The nominal exchange rate is 32 Russian rubles per dollar. The price of a bushel of wheat is 260 rubles in Russia and $7 in the U.S. A. What is the real exchange rate? Show your work. B. Can arbitragers make a profit? C. If your answer to B is yes, where would arbitragers buy and where would they sell