Answer the following statements true (T) or false (F)
1. Special Drawing Rights are issued by the International Monetary Fund and are a principal source of international reserves.
2. The dollar shortage of the 1950's came about because the economies of foreign countries became competitive with the United States.
3. In the 1970's, the value of the U.S. dollar in world financial markets declined significantly.
4. The United States devalued the dollar twice in the 1970's to alleviate the world’s dollar shortage.
5. In the first half of the ', the value of the dollar was allowed to increase sharply to promote U.S. exports.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5.FALSE
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Gross domestic product measures the ________ value of ________ goods and services produced during a ________ time period
A) inherent; market; fixed B) final; intermediate; stable C) intermediate; final; constant D) market; final; given
Refer to Figure 13-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
A) Given the information above, if full employment GDP were 2,000, would there be an inflationary gap or a recessionary gap? B) What two fiscal policy measures would you recommend to remove the gap?
Which of the following is not possible when a firm is maximizing its profits?
a. MC = MR b. AVC is at its minimum point c. AFC < AVC d. MC = MR and MC is decreasing e. MC = MR and MC is increasing