In the current international monetary system, what is the role for gold?
a. The system is a gold-exchange standard, based on a fixed value for a key currency.
b. Gold backs each currency, and therefore, the system as a whole.
c. It serves as the principal reserve asset.
d. It has no role.
d
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What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if the price of synthetic textiles declines?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
Table 36-1Suppose the economy of Macroland is described by the following:C = 200 + 0.8 DI (DI = disposable income)I = 300 + 0.2Y?50r (Y = GDP)(r, the interest rate, is measured in percentage points. For example, a 9 percent interest rate is r = 9).For this economy, assume that the Federal Reserve uses its monetary policy to peg the interest rate atr = 5G = 750T = 0.25YX = 200M = 150 + 0.2YHint: DI = Y?T From Table 36-1, find the trade deficit or surplus.
A. 475 deficit B. 75 deficit C. 75 surplus D. 475 surplus
In economics, choices must be made because we live in a world of
A) unemployment. B) scarcity. C) greed. D) unlimited resources.
Most trading in the retail part of the foreign exchange market is trading done among foreign exchange traders at banks.
Answer the following statement true (T) or false (F)