Countries are unlikely to maintain fixed exchange rates for long periods of time because:
A. fixed exchange rates eventually produce very high levels of inflation.
B. fixed exchange rates impede a nation's ability to use monetary and fiscal policy to pursue domestic macroeconomic goals.
C. fixed exchange rates promote domestic macroeconomic goals at the expense of international macroeconomic goals.
D. they lack the tools to do so.
Answer: B
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The narrowest definition of the money supply, including cash and checking deposits, is known as
a. M0. b. M1. c. M payments. d. currency. e. real-value money.
Why have the earnings of persons with less education (and skill) fallen relative to those with more education (and skill)?
a. more regulation of the transport industry b. more powerful unions c. international competition d. all of the above
Refer to the figure below. Assume the market is originally at point W. Movement to point Z is a combination of: 
A. an increase in demand and an increase in quantity supplied. B. an increase in supply and an increase in demand. C. a decrease in supply and an increase in quantity demanded. D. an increase in supply and an increase in quantity demanded.
Suppose you deposit $2,000 into Bank of America and that the required reserve ratio is 10 percent. How does this affect the bank's balance sheet?
A) Reserves rise by $200. B) Required reserves rise by $2,000. C) Deposits rise by $1,000. D) Excess reserves rise by $1,800.