The most important, most convenient, and most flexible way in which the Federal Reserve affects the supply of bank reserves is through:
A. changing interest rates.
B. conducting open-market operations.
C. changing bank reserve requirement ratios.
D. changing the Federal Reserve discount rate.
Answer: B
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Dumping occurs when a foreign firm ________
A) pollutes international waters B) disposes of waste materials in other countries C) sells inferior output to foreigners D) sells its exports at a lower price than its cost of production
On a graph with x on the horizontal axis and y on the vertical axis, the origin is
a. the point where x = 0 and y = 0 b. any point where x = 0 c. any point where y = 0 d. where a curve intersects the vertical axis e. where a curve intersects the horizontal axis
Allocative efficiency occurs where:
a. the price of a good is less than the marginal cost of producing it. b. the price of a good is greater than the marginal cost of producing it. c. the price of a good is equal to the marginal cost of producing it. d. the greatest quantity of output is available for sale.
Consider a country Atlantica, using dollars ($) as its currency. If this country sets a price for gold, and then issues currency such that the amount in circulation is equivalent to the value of gold held in reserve, it is said to be following:
a. a gold exchange standard. b. a gold standard. c. a reserve currency standard. d. a crawling peg standard. e. a currency board standard.