Domestic monetary policy is essentially useless under
A. a floating exchange rate system.
B. a fixed exchange rate system.
C. the gold standard.
D. conditions of balance of payments surpluses.
Answer: C
You might also like to view...
When a country imports a good or service from the rest of the world, the consumer gains because the greater the ________ in price and ________ in quantity bought, the greater is the ________ to the consumer
A) fall; decrease; gain B) rise; increase; gain C) fall, increase; gain D) fall; increase; loss E) rise; decrease; gain
Answer the following statements true (T) or false (F)
1. The study of economics is primarily theoretical and has very little practical application. 2. Economics is considered a physical science. 3. Economies must make choices because resources are limited while wants are unlimited. 4. Production is the creation or addition of utility.
The market and public sector are similar in that
A) there is competition amongst the participants in both sectors. B) the resources used in both sectors are scarce. C) the participants in both sectors react to incentives. D) All of the above are true.
The graph above shows cost curves for a perfectly competitive firm. If market price is $2, how much profit will the firm earn?
A. -$600 B. $600 C. $400 D. zero