When a country fixes the price of foreign exchange (in terms of the domestic currency) below equilibrium, which of the following will result?
a. A black market will develop for foreign exchange.
b. Residents of that country can buy as much foreign currency as they want.
c. There will be a surplus of foreign exchange.
d. A depreciation of the currency will restore equilibrium in the foreign exchange market.
A
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The Federal Open Market Committee (FOMC)
A) has six members. B) conducts open market operations. C) is the policy-making body within the Treasury. D) is the governing body of the Federal Reserve System. E) a, b, and c
The more restrictive affirmative action programs are,
A) the greater the likelihood of the economic pie shrinking. B) the lower the administrative costs of administering the program. C) the larger the wage gap tends to get. D) the greater the amount of labor market discrimination.
In the long run, if firms in a perfectly competitive market are incurring economic losses, then
A) new firms will enter the market and the price will rise. B) some firms will leave the market and the price will fall. C) some firms will leave the market and the price will rise. D) new firms will enter the market and the price will fall.
One of the major insights by economist John Maynard Keynes about production was that:
A. government spending needs to be kept in check in order for the economy to operate efficiently. B. household spending patterns don't really influence the health of the economy. C. firms may not produce all they can at a given price, but what they can sell. D. firms generally produce as much as they can at a given price.