A central bank ________ of domestic currency and corresponding ________ of foreign assets in the foreign exchange market leads to an equal increase in its international reserves and the monetary base, everything else held constant
A) sale; purchase
B) sale; sale
C) purchase; sale
D) purchase; purchase
A
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The price of wine has risen from $7 to $9 per bottle and the price of cheese has fallen from $6 to $5 per pound, while Anne's income has stayed fixed at $46 per week. Since the price changes, Anne has been buying 4 bottles of wine and 2 pounds of cheese per week. We can conclude that
a. Anne is indifferent about the price changes. b. Anne is worse off after the price changes. c. Anne is better off after the price changes. d. Anne may be worse off, better off, or indifferent after the price changes.
Terms of trade indicate the purchasing power of a nation's exports
Indicate whether the statement is true or false
In repeated games:
A. players no longer need commitment strategies to reach a mutually beneficial equilibrium. B. negative-negative outcomes are the only outcomes possible. C. players will never reach a mutually beneficial equilibrium. D. there are no dominant strategies.
The shape of the immediate-short-run aggregate supply curve implies that:
A. total output depends on the volume of spending. B. increases in aggregate demand are inflationary. C. output prices are flexible, but input prices are not. D. government cannot bring an economy out of a recession by increasing spending.