A deficit nation in a fixed exchange rate system can improve its balance of payments by increasing
A. its money supply.
B. its interest rates.
C. its level of real GDP.
D. aggregate demand.
Answer: B
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A factory produces 1,000 radios a year, AVC = $10 and TFC = $5,000. The factory’s TC
A. equals $15. B. equals $5,005. C. equals $15,000. D. cannot be determined from the information given.
In the United States today, households headed by single women are more likely to be poor than:
A. married families. B. black males. C. Hispanic males. D. All of these are true.
A motivation for holding stock is
A. To receive interest payments on the firm's debt. B. To have a direct role in the operation of the corporation. C. To own a low-risk, illiquid asset. D. The anticipation of capital gains.
The breakfast cereals industry can be best modeled using the model of
A. monopoly. B. perfect competition. C. oligopoly. D. monopolistic competition.