Contractionary fiscal policy with floating exchange rates and very low capital mobility leads to currency depreciation.
Answer the following statement true (T) or false (F)
False
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The Secretary of the Treasury
A) serves as Chairman of the Board of Governors. B) serves as a member of the Board of Governors. C) serves as a member of the Federal Open Market Committee. D) does not serve on the Board of Governors.
If free international trade is compromised by the imposition of an import quota or tariff,
a. all of the following are true b. import-competing producers in the country that imposes the tariff or quota will be able to sell a larger quantity at higher prices c. consumers of import goods will obtain a larger quantity at lower prices d. workers in export industries will find more jobs e. consumers of export goods will obtain a larger quantity, although only at higher prices
A single firm that charges the monopoly price in the market earns $1,300. If another firm successfully enters the market, the incumbent's profits fall to $700 and the entrant earns $575. If the interest rate is 0.5, how high must the firm's profits from limit pricing be for limit pricing to be a profitable strategy for the incumbent?
A. ?L > $500 B. ?L > $200 C. ?L > $900 D. ?L > $1,000
Pollution taxes reduce pollution by:
A. decreasing the amount of the good sold that causes the pollution. B. causing firms to produce less of the good that generates the pollution. C. encouraging firms to modify their production process to reduce emissions. D. All of these