A reserve currency is a currency that is:
a. used exclusively to settle domestic debts.
b. specifically designed for use by commercial banks to settle accounts.
c. held only by bureaucrats.
d. used to settle international debts by private corporations.
e. held by governments to facilitate foreign exchange market interventions.
e
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The most important role of the World Trade Organization is
(a) to promote market oriented economic policies. (b) to settle trade disputes. (c) to provide development assistance. (d) to help countries choose the appropriate level of a tariff or quota.
When a unit tax is placed on demanders ____
a. it will be paid entirely by demanders if the demand curve is elastic b. it will have the same effect as a similar unit tax placed on suppliers c. they will pay a larger share than if it was initially placed on suppliers d. they will pay a smaller share than if it was initially placed on suppliers
Adding more resources to production causes
a. a downward movement along the production possibilities curve b. the production possibilities curve to shift in toward the origin c. an upward movement along the production possibilities curve d. the production possibilities curve to shift out from the origin e. the production possibilities curve to become positively sloped
If the net exports component of U.S. GDP is negative, then it is an indication that
a. Americans buy insufficient exports b. Americans buy too many exports c. GDP will be underestimated d. Americans export more than they import e. Americans export less than they import