Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's central bank intervenes to raise the value of the Swiss franc, then:
a. The supply of Swiss francs in the foreign exchange market rises, and England's monetary base rises.
b. The supply of Swiss francs in the foreign exchange market rises, and England's monetary base falls.
c. The demand for Swiss francs in the foreign exchange market rises, and England's monetary base rises.
d. The demand for Swiss francs in the foreign exchange market rises, and England's monetary base remains unchanged.
e. The demand for Swiss francs in the foreign exchange market rises, and England's monetary base falls.
.C
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Additions to the nation's capital stock are brought about through
A) the current account surplus. B) investment. C) investment and the current account surplus. D) investment and the government budget surplus.
Which of the following statements is most correct?
A. Money growth is the result of inflation. B. It is impossible to have high, sustained inflation without monetary accommodation. C. There is no clear link between high, sustained inflation and the monetary aggregates. D. The current rate of inflation is the result of money growth.
Which of the following statements describes the experiences of Chevron since it became independent in 1911?
A) strong uninterrupted growth in demand B) long-run growth interrupted by periods of business cycle recession C) little or no growth in the long run, and unaffected by the business cycle D) little or no growth in the long run, but very vulnerable to the business cycle
Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.
Figure 3.18Refer to Figure 3.18. The market is initially in equilibrium at Point A. If demand shifts from D1 to D2 and there is an excess demand of 150 million pounds of burritos, the price of burritos would be
A. $1.50. B. $3.00. C. $4.00. D. $6.00.