If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries.
B. completely ineffective on the exchange rate.
C. likely to have a much greater impact on the exchange rate than in developed countries.
D. likely to have roughly the same impact on the exchange rate as in developed countries.
Answer: C
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The above figure shows the U.S. market for replacement cell phone batteries. With free trade, U.S. production is equal to ________ batteries per year
When a $2 tariff is in place, U.S. production is equal to ________ batteries per year. A) 900,000; 700,000 B) 300,000; 100,000 C) 100,000; 500,000 D) 300,000; 500,000 E) 100,000; 300,000
What is deadweight loss? When is deadweight loss equal to zero?
What will be an ideal response?
Assuming a long-run aggregate supply curve, a decrease in government spending results in ________ in output and ________ in price level.
A. no change; an increase B. no change; a decrease C. a decrease; a decrease D. an increase; no change
With reference to the consumption function, the 45-degree line represents
A. all points at which planned real saving is equal to real disposable income. B. all points at which real disposable income is equal to real consumption spending. C. the planned savings function. D. all points at which planned real saving is equal to planned real consumption spending.