Suppose a country is pursuing a fixed exchange rate regime with imperfect capital mobility. The ability of that country to move its domestic interest rate while maintaining its exchange rate will depend on
A) the degree of development of its financial markets.
B) the degree of capital controls.
C) the amount of foreign exchange it holds.
D) all of the above
E) both A and B
D
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If the United States imposed a quota on the amount of salmon imported from Chile, the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States
A) higher; an increase B) higher; a decrease C) lower; an increase D) lower; a decrease E) higher; no change
Refer to Figure 2-1. Point A is
A) technically efficient. B) unattainable with current resources. C) inefficient in that not all resources are being used. D) the equilibrium output combination.
Which of the following is NOT a characteristic of perfect competition?
A. Products are homogeneous. B. Buyers and sellers have equal access to information. C. There are many buyers and sellers. D. Each firm determines the market price of its product.
In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by
A) $2.00 per unit. B) $4.00 per unit. C) $6.00 per unit. D) $8.00 per unit.