Adoption of a currency board
A) is one method for achieving a soft peg policy.
B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences.
C) mandates the use of currency in all domestic transactions.
D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.
D
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The above figure shows the apartment market in Big City. A rent ceiling of $1100 would
A) not create a black market. B) create a shortage of apartments. C) decrease search activity. D) shift the supply curve rightward.
The command economy of World War I (1914–18) possessed which of the following traits?
(a) Decentralized decision-making in the markets (b) The creation of many state agencies (c) Volunteers for the armed forces (d) Centralized decision making by bureaucrats
Profit is maximized at the output at which marginal revenue equals marginal cost
a. True b. False Indicate whether the statement is true or false
If the production of a good generates a detrimental externality, then at that level of production of the good under perfect competition,
A. MSC > P. B. MPC > MSC. C. P > MU. D. MPC > P.