In a fixed exchange rate system, the center country, to whose currency the other countries peg their exchange rate, will:
A) find it difficult to conduct autonomous monetary policy.
B) find it difficult to conduct autonomous fiscal policy.
C) easily implement monetary and fiscal policy to suit its economy.
D) defer to advice from other countries in conducting its domestic policy.
Ans: C) easily implement monetary and fiscal policy to suit its economy.
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Which statement about poverty in the United States is true?
a. Most people living below the poverty line are white. b. Most people living below the poverty line are African American. c. Poverty rates are relatively low for females. d. Poverty rates are relatively low for Hispanics.
The marginal tax rate is:
A. less than the average tax rate when a tax is progressive. B. calculated by dividing total taxes paid by one's total taxable income. C. the percentage of one's total income that is paid in taxes. D. the percentage of an increment of income that is paid in taxes.
When a bank receives $100,000 in new deposits, the amount of loans the bank can make is limited by
A) the Treasury Department. B) federal law. C) its desired reserve ratio. D) the annual federal budget. E) state law, with banks in different states being able to make different amounts of loans.
In the long run, a firm in a monopolistically competitive industry has its price equal to its
A) average total cost. B) marginal cost. C) marginal revenue. D) elasticity of demand.