All else being equal, if Asian restaurants switch from serving French champagne to serving California wines, then the market equilibrium value of the exchange rate for the U.S. dollar will:
A. rise.
B. either rise or fall depending on whether the supply or demand for dollars changes more.
C. become fixed.
D. fall.
Answer: A
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Virtually all Federal Reserve open-market purchases and sales are conducted with government securities, mostly
A) Treasury bills. B) Treasury notes. C) Treasury bonds. D) savings bonds.
Americans are creating an enormous amount of solid waste daily-over 4 pounds per person per day. How is the United States coping with this extraordinary problem?
Reserve ratio is 10% and a bank receive a new checkable deposit 1,000
What will be an ideal response?
A monopolist finds the output (Q*) rate that maximizes profit. It finds the price by
A) taking the height of the marginal revenue curve at output rate Q. B) taking the height of the marginal cost curve at output rate Q. C) taking the height of the demand curve at output rate Q. D) setting price equal to marginal cost.