Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 10 Chinese yuan, but it finds that the value of yuan is depreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A) Increase government spending within the U.S.
B) Buy U.S. dollars.
C) Sell U.S. dollars.
D) Increase the money supply in the U.S.
C
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Which of the following is an example of basic research?
a. Conducting animal tests to determine if a product contains irritants b. Soft drink bottlers testing consumer reactions to their advertisements c. A statistician calculating the odds of winning a promotional sweepstakes that a company is running d. A catalog sales company timing its operators to see how many calls each is handling per day e. A chemist building a mathematical model of the atmosphere of Jupiter
If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be below and then above the 45 degree line
a. True b. False Indicate whether the statement is true or false
The value of the marginal product of new capital increases when the:
A. the price of the good the firm produces decreases. B. real interest rate increases. C. price of new capital goods increases. D. productivity of new capital increases.
To get a profit-maximizing firm in a perfectly competitive labor market to hire another worker, the firm will need to
A. raise the wage rate paid to that last worker hired and also to all previous workers hired. B. lower the wage rate paid to that last worker hired and also to all previous workers hired. C. lower the wage rate paid to the last worker hired only. D. raise the wage rate paid to the last worker hired only.