If a country has an overvaluation problem, the best solution is to
A. sell more of its currency in the foreign exchange market.
B. buy less of its currency in the foreign exchange market.
C. decrease the money supply.
D. increase the official rate.
Answer: C
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About planning on capacity utilization: Producers typically
a. disregard interest rates when making long-term decisions about capacity utilization b. end up with high interest rates when planning for future capacity utilization c. operate at 100 percent capacity d. enjoy carrying excess productive capacity e. choose a capacity rate that gives them some degree of short-run flexibility
When economists make positive statements, they are
a. speaking as scientists. b. speaking as policy advisers. c. making claims about how the world should be. d. revealing that they are very conservative in their views of how the world works.
Describe the functions of the Federal Reserve System.
What will be an ideal response?
Refer to the above table. What does the marginal product equal when the quantity of labor goes from 2 to 3?
A. 21 B. 189 C. 63 D. 17