Refer to Figure 19-12. The graph above depicts supply and demand for U.S. dollars during a trading day, where the quantity is millions of dollars. In order to support a fixed exchange rate of 0.30 pounds per dollar, the U.S. central bank must
A) sell 0.4 million dollars per trading day. B) buy 0.8 million dollars per trading day.
C) sell 0.8 million dollars per trading day. D) buy 0.4 million dollars per trading day.
C
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The variables that determine a household's budget line are
A) its preferences and income. B) its preferences and prices. C) prices and income. D) None of the above are correct.
Nancy's utility of wealth curve is given in the above figure. Option A gives Nancy $100 for sure. Option B gives Nancy $50 half the time and $150 half the time. Nancy's expected utility of option A
A) is greater than the expected utility of option B. B) is the same as the expected utility of option B. C) is less than the expected utility of option B. D) could be either greater or less than the expected utility of option B.
Which of the following statements is INCORRECT?
a. The Oil Pollution Act (OPA) was enacted in response to the BP Deepwater Horizon spill. b. The Ocean Dumping Act ends dumping of sewage sludge and industrial waste. c. The Great Lakes Legacy Act provides federal funding to address contamination of the Great Lakes d. Included in the Water Quality Act of 1987 were requirements for states to establish nonpoint source pollution program
For most of the Fed's history, the Fed:
A. found banks would borrow from the Fed far more often than they would borrow in the federal funds market. B. tied the discount rate to the rate on Treasury securities. C. was very lenient in making discount loans. D. lent reserves at an interest rate below the target federal funds rate.