Why might the Federal Reserve intervene in foreign currency markets?
A. to ensure the safety of overseas investments for private investors
B. to ensure the safety of overseas investments for banks
C. to maintain a desired exchange rate for the dollar
D. to ensure the safety of overseas investments for pension funds
Answer: C
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An important distinction between Friedman's and others' views of the demand for money is the former's emphasis on the
A) substitution between money and virtually all other goods and assets. B) nominal rate of interest. C) substitution between money and other financial assets. D) effects of wealth.
What are the sources of private investments in foreign nations?
What will be an ideal response?
One problem that might occur as a result of economic regulation is
A) the firm may be earning more than a normal rate of return on investment. B) the quality of service might be lowered. C) that social regulation may follow. D) the demand for the good may be greater than the supply.
The Laffer curve shows the relationship between tax:
a. revenue and tax rates. b. revenue and take-home pay. c. revenue and government spending. d. rates and take-home pay. e. rates and government spending.