Continuing with the same vacation-insurance company from the preceding question, what vacation-day price(s) would be acceptable to both the family and the insurance company?
a. 2 only
b. 3 only
c. 2 or 3
d. 4
c
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An increase in the price of a good causes
A) a change in the slope of the budget line. B) an increase in the consumption of that good. C) a rightward shift of the demand curve for that good. D) a parallel rightward shift of the budget line.
When the Federal Reserve sells U.S. government securities on the open market, this tends to ____ banks reserves and ______ the money supply.
A. raise; raise B. lower; lower C. raise; lower D. lower; raise
The rate at which two currencies can be traded for each other is called the ________ exchange rate.
A. real B. fixed C. nominal D. flexible
The following situation is an example of an export promotion strategy. Guatemala has a comparative advantage in the production of bananas and, as a result, the Guatemalan government grants incentives to banana growers to improve their performance in the international marketplace.
Answer the following statement true (T) or false (F)