Which criterion for suitability as a medium of exchange do Federal Reserve Notes meet?
A) They are of standardized quality.
B) They are durable.
C) They are acceptable to most traders.
D) Federal Reserve Notes meet all of the criteria for suitability as a medium of exchange.
D
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
If the exchange rate changes from $0.08 = 1 mexican peso to $0.09 = 1 mexican peso, then
A) the peso has depreciated and the dollar has appreciated. B) both the peso and dollar have appreciated. C) both the peso and dollar have depreciated. D) the peso has appreciated and the dollar has depreciated.
What is the difference between equity instruments and debt instruments?
What will be an ideal response?
Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $8, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $6. Based on this information, the firm is:
A) earning an economic profit of $600. B) earning an economic profit of $1,200. C) incurring a loss of $600. D) incurring a loss of $1,200.