If a country wants to keep the value of its currency fixed, then its central bank should
A) sell domestic goods when there is an increase in the supply of its domestic currency.
B) buy domestic goods when there is an increase in the supply of its domestic currency.
C) sell its domestic currency when there is an increase in the supply of that currency.
D) buy its domestic currency when there is an increase in the supply of that currency.
D
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What would happen to the optimal amount of pollution if studies found dangerous effects of SO2 cause cancer and the government takes away subsidies to companies for cleaning up their pollution?
A. Uncertain B. Increase C. Stay the same D. Decrease
It has been noted that a country that grants a considerable amount of economic freedom will experience
A) positive rates of per capita income growth. B) low levels of political freedom. C) dead capital. D) negative rates of per capita income growth.
If the theory behind an economic model fits the data poorly, you would probably want to
A) use the theory to predict what would happen if the economic setting or economic policies change. B) start from scratch with a new model. C) enrich the model with additional assumptions. D) restate the research question.
A decrease in demand for a product, holding other things constant, will
A) increase the marginal revenue product of labor. B) decrease the marginal revenue product of labor. C) not change the marginal revenue product of labor. D) have an undetermined effect upon the marginal revenue product of labor.