From the late 1800s until the start of World War I, the international financial system used the U.S. dollar as the key reserve currency, and featured fixed exchange rates in terms of the U.S. dollar. The U.S. government stood ready to convert foreign holdings of dollars into gold at a rate of $35 per ounce
Indicate whether the statement is true or false
false
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Which of the currencies below does not serve a role as an international reserve currency?
A) European euro B) Japanese yen C) U.S. dollar D) Mexican peso
The diagram concerns supply adjustments to an increase in demand (D 1 to D 2 ) in the immediate market period, the short run, and the long run. In the immediate market period, the increase in demand will:
A. have no effect on either equilibrium price or quantity.
B. increase equilibrium price but not equilibrium quantity.
C. increase equilibrium quantity but not equilibrium price.
D. increase both equilibrium price and quantity.
Individuals economize and respond predictably to
What will be an ideal response?
Which statement is true?
A. Autonomous C can never be greater than induced C. B. Induced consumption can never be zero. C. As disposable income gets larger, induced C gets larger relative to autonomous C. D. None of these statements are true.