Under a fixed exchange rate regime, if a country's central bank runs out of international reserves, it cannot keep its currency from
A) depreciating.
B) appreciating.
C) deflating.
D) inflating.
A
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According to your textbook, what is the general rule to follow in order to maximize net revenue?
A) Take any action if, but only if, the expected marginal revenue exceeds the expected marginal cost. B) Take any action you expect will not be copied by your competitors. C) Take as many innovative actions as you can, and leave the copying up to smaller firms in the market because they are least likely to increase their market share. D) Charge the lowest possible price.
The management of money and interest rates is called ________ policy and is conducted by a nation's ________ bank
A) monetary; superior B) fiscal; superior C) fiscal; central D) monetary; central
The effect on the level of income of a given increase in the money stock is
a. irrelevant to the interest elasticity of money demand. b. greater the lower the interest elasticity of money demand. c. greater the higher the interest elasticity of money demand. d. None of the above
If both a monopoly and a competitive market with the same marginal cost would produce a quantity that is greater than the social optimum in a market because of externalities, then
A) welfare is greater under monopoly. B) welfare is greater under competition. C) welfare is the same for both market structures. D) the social optimum must be zero.