On August 15, 1971, the United States
A) returned to the gold standard.
B) suspended the convertibility of dollars into gold.
C) provided unlimited dollar reserves to the German central bank to help end a speculative attack on the mark.
D) provided unlimited dollar reserves to the Bank of England to help end a speculative attack on the pound.
B
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The higher the federal funds rate, the ________ the opportunity cost of holding reserves, which ________ the incentive to economize on reserves
A) lower; increases B) lower; decreases C) higher; decreases D) lower; does not change E) higher; increases
If 25 workers can pick 100 flats of strawberries per hour, then average product is
A) 100 flats per hour. B) 125 flats per hour. C) 75 flats per hour. D) 4 flats per hour. E) More information is needed about how many flats 24 workers can pick.
A piece of land is divided between John and Mary. However, only John gets the title to his share of land. Which of the following is true?
a. Both Mary and John will not take care of their lands. b. Mary will have a higher per capita output from her piece of land. c. John will not be able to rent out a portion of his land. d. Mary will have a greater incentive than John to invest in her piece of land. e. John will be able to use his land as collateral for a loan from a bank.
The term used to describe the situation in which government spending causes interest rates to increase and private sector investment to fall is
a. negative feedback b. crowding out c. positive pressure d. transfer of burden e. investment shift