Which of the following statements is incorrect?
A. Any central bank policy that influences the domestic interest rate will affect the exchange rate.
B. A foreign exchange intervention affects the value of a country's currency by changing domestic interest rates.
C. Higher U.S. interest rates would likely result in an appreciation of the U.S. dollar.
D. Sterilized changes in foreign exchange reserves alter a country's monetary base.
Answer: D
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Which of the following statements is correct?
A) When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. B) When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. C) The higher the temperature, the more ice cream people consume. Thus the temperature and ice cream consumption are inversely related. D) If two variables are directly related, a graph of the two variables has a negative slope. E) None of the above statements is correct.
Refer to Scenario 2.1. If P = $25, which of the following is true?
A) There is a surplus equal to 30. B) There is a shortage equal to 30. C) There is a shortage, but it is impossible to determine how large. D) There is a surplus, but it is impossible to determine how large.
How is the issue of the "free rider" relevant to the discussion of whether access to medical care is a fundamental right?
a. The socially responsible approach is to provide free access to all the medical care a person desires. b. As long as there is excess capacity in the medical care system, providing free access to care does not present a resource allocation problem. c. The free rider argument is based on the idea that access to medical care should be free and available to everyone. d. Providing medical care at zero cost will maximize social welfare.
The principle of diminishing marginal utility states that:
A. you enjoy consuming more of a good if it is good. B. as you consume more of a good, you enjoy the additional units more than you did the initial units. C. you don't enjoy consuming more of a good. D. as you consume more of a good, you enjoy the additional units less than you did the previous units.