If a country adopts another country's currency, it is called
A) dollarization.
B) a crawling peg.
C) a dirty float.
D) monetary order.
A
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Consider the market for credit. When the supply of credit increases while the demand for credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase. B) the interest rate will increase and the amount of credit provided in the market will increase. C) the interest rate will decrease and the amount of credit provided in the market will decrease. D) the interest rate will increase and the amount of credit provided in the market will decrease.
Other things being equal, a decrease in the default risk of corporate bonds shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds to the ________
A) right; right B) right; left C) left; right D) left; left
A decrease in U.S. prices relative to European prices
A) will decrease European exports to the United States. B) will increase U.S. imports from Europe. C) will decrease U.S. exports to Europe. D) will not affect U.S. trade with Europe.
Which of the following best represents the effects of a decrease in the price of belts, other things being equal?
a. An upward movement along the demand curve for belts. b. A downward movement along the demand curve for belts. c. A rightward shift in the demand curve for belts. d. A leftward shift in the demand curve for belts.