An increase in the value of the U.S. dollar internationally, ceteris paribus, would result in
A. Higher revenues for U.S. farmers.
B. Lower revenues for U.S. farmers.
C. An increase in the dollar value of U.S. farmland.
D. An increase in the domestic prices of U.S. farm products.
Answer: B
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Suppose that a market is currently served by a single firm protected by high entry costs from any potential competition. Then imagine fixed entry costs gradually falling in a model where any competition will be with quantity as the strategic variable. Describe how you would expect output price to evolve as entry costs fall.
What will be an ideal response?
The Fed's countercyclical policy during expansion and prosperity includes:
a. raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market. b. raising the required reserve ratio, raising the discount rate, and buying government bonds on the open market. c. raising the required reserve ratio, cutting the discount rate, and selling government bonds on the open market. d. raising the required reserve ratio, cutting the discount rate, and buying government bonds on the open market. e. lowering the required reserve ratio, cutting discount rates, and buying government bonds on the open market.
The marginal propensity to consume is the ratio of a change in consumption to a change in income
Indicate whether the statement is true or false
A bank can only loan out its excess reserves
Indicate whether the statement is true or false