The answer is: "The price of one currency in terms of another currency." What is the question?
A) What is a foreign currency?
B) What is an exchange rate?
C) What is a flexible exchange rate system?
D) What is a fixed exchange rate system?
B
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Some firms practice odd pricing because
A) it is a way to price discriminate. B) it is too difficult for sellers to reeducate buyers into accepting even prices. C) it lowers transactions costs. D) they believe that customers will buy a larger quantity with an odd price.
Suppose the Fed sells $100 million of U.S. securities to the public. If the reserve requirement is 20 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a
a. $100 million decrease. b. $500 million increase. c. $500 million decrease. d. $100 million increase.
When a buyer's willingness to pay for a good is equal to the price of the good, the
a. buyer's consumer surplus for that good is maximized. b. buyer will buy as much of the good as the buyer's budget allows. c. price of the good exceeds the value that the buyer places on the good. d. buyer is indifferent between buying the good and not buying it.
In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm OneFirm Two??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(5,-5)(0,0)Which of the following are Nash equilibrium payoffs in the one-shot game?
A. (-5, 5) B. (0, 0) C. (5, -5) D. (10, 10)