A natural region over which a single currency dominates as a medium of exchange is called
A) sovereign nation.
B) monetary union area.
C) common currency area.
D) currency union.
C
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Based on the model of the money market, when real income decreases, the equilibrium interest rate should:
A. stay the same. B. increase. C. decrease. D. increase to the same extent that the supply of money increases.
Figure 4.3 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.
________ has been the primary system for determining exchange rates since 1971.
A. The Bretton Woods system B. A managed floating system C. The gold standard D. A freely floating system
Which of the following decreases the demand for loanable funds and shifts the demand for loanable funds curve leftward?
A) The real interest rate rises. B) The economy experiences a recession. C) Wealth decreases. D) Technology that increases productivity is introduced. E) An economy experiences a rapid increase in population.