Under a fixed exchange rate system, the central bank of a country experiencing a balance of payments deficit will:
A) increase the supply of the domestic currency to prevent currency depreciation.
B) increase the demand for the domestic currency to prevent currency depreciation.
C) increase the supply of domestic currency to prevent a currency appreciation.
D) increase the demand for domestic currency to prevent a currency appreciation.
B
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A recent estimate of the fiscal burden on state and local government for low-skilled immigrant households is nearly:
A. $10 billion annually B. $30 billion annually C. $50 billion annually D. $100 billion annually
Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing consumer surplus after the imposition of the price floor?
A) A + B + D B) B + C + D + E C) A D) C + E
According to the aggregate demand-aggregate supply model, what is the short-run impact of a reduction in the money supply by the Fed?
A) Current output will fall, but the price level will rise. B) Current output will rise, but the price level will fall. C) Current output and the price level will both rise. D) Current output and the price level will both fall.
If the marginal utility to Juan of sleeping an extra hour (from 8 a.m. to 9 a.m.) is negative,
a. Juan is better off getting up at 8 a.m. b. Juan is better off getting up at 9 a.m. c. Juan's total utility from sleeping must be negative. d. Juan's average utility from every hour he sleeps must be negative.