The monetary approach predicts that an increase in the money supply by 12 percent in both China and Thailand will
A. lower the volume of trade between Thailand and China.
B. result in a depreciation of the Thai baht against the Yuan.
C. result in an appreciation of the Thai baht against the Yuan.
D. have no effect on the baht per Yuan exchange rate.
Answer: D
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Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates
A. distorted priorities. B. increasing opportunity costs. C. opportunity costs. D. productive efficiency.
The output level is constant along any isoprofit line.
Answer the following statement true (T) or false (F)
Rising inflationary pressure caused the U.S. to tighten its monetary policy at the end of the 1960s
As a result, market interest rates rose above the Regulation Q ceiling and American banks found it impossible to attract time deposits for re-lending. How did the banks get around this problem? A) by setting their own interest rates and then using better business as compensation for government regulations B) by borrowing funds from European branches, which faced no restriction on the interest they could pay on Eurodollar deposits C) by pushing through new legislation that nullified Regulation Q D) by creating subsidiary branches in foreign countries E) by waiting to trade time deposits until Regulation Q no longer applied
All of the following are limitations of direct consumer surveys except:
A) the possibility that consumers' responses may not reflect their actual behavior in the market place. B) the possibility of response biases because survey respondents may not want to reveal their true preferences. C) the likelihood that respondents will deliberately and systematically mislead interviewers. D) the possibility that the type of questions asked may unintentionally bias the respondent's answers.