If your income goes up by 2% and, in response, the quantity demanded of good x rises by 3%, good x can be considered
a. An inferior good
b. A normal good
c. A public good
d. A private good
b
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In order to continue operating, in the long-run a firm must
a. Charge a price equal to its AVC b. Charge a price equal to its AFC c. Charge a price equal to its AC d. None of the above
In its function of controlling the money supply, the Fed does all but which one of the following?
a. buys and sells U.S. government securities b. sets the legal reserve requirement c. sets the discount rate d. engages in open market operations e. prints currency
A budget surplus is defined as the amount that the
a. government owes to lenders at any moment in time. b. government spends in any time period. c. government's expenditures exceed receipts in any time period. d. government's receipts exceed expenditures in any time period.
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, what effect would these flows have had on Venezuela's reserves account and value of the Bolivar (the Venezuelan currency)?
a. Reserves account would rise and value of the Bolivar would not change. b. Reserves account would not change and value of the Bolivar would fall. c. Reserves account would fall and value of the Bolivar would not change. d. Reserves account would fall and value of the Bolivar would fall. e. Reserves account would fall and value of the Bolivar would rise.