If the Fed wants to maintain a dollar exchange rate of 1.20 euros per dollar but the exchange rate rises, then in the short run the Fed can
A) buy dollars and buy euros.
B) do nothing.
C) sell dollars and sell euros.
D) buy dollars and sell euros.
E) sell dollars and buy euros.
E
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Use the figure below to answer the following question.
An increase in supply would best be reflected by a change from
A. point 2 to point 5. B. point 1 to point 3. C. point 1 to point 2. D. point 3 to point 4.
Which of the following would shift the FE line to the right?
A) An adverse supply shock B) An increase in labor supply C) A decrease in the capital stock D) An increase in the future marginal productivity of capital
Suppose a plaintiff hires a lawyer to represent her in a court case. The lawyer will be paid by the hour. Under this contract
A) efficiency is not achieved. B) the client bears all of the risk. C) the lawyer has an incentive to lie about his hours worked. D) All of the above.
International specialization and trade according to the principle of comparative advantage is mutually beneficial for all economies involved
a. True b. False Indicate whether the statement is true or false