A reserve currency is a currency that is:
a. used exclusively to settle domestic debts.
b. specifically designed for use by commercial banks to settle accounts.
c. held only by bureaucrats.
d. used to settle international debts by private corporations.
e. held by governments to facilitate foreign exchange market interventions.
e
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The more closely substitutable are two goods, the
A) more normal looking is the indifference curve for the two items. B) more closely the indifference curve for these two items approximates a straight line. C) more tightly curved is the indifference curve for these items. D) None of the above answers is correct.
The growth of cities was due to the existence of important scale economies, which include all of the following except
(a) Central water and sewer systems (b) Education systems (c) Crime, congestion and pollution (d) Police and fire protection
In many countries, education is either wholly provided by the government or is heavily subsidized. How would an economist explain this?
A. Since education has a spillover? benefit, private markets will under provide for it. B. Education is a pure public good and those who do not pay cannot be excluded from it. C. Individuals will not purchase education because they do not benefit from it. D. Since education has a spillover? cost, private markets will over provide for it. E. The only way to provide education is through a? government-sponsored system.
In evaluating public projects, a higher interest rate (r) will favor those projects which
a. have costs and benefits occurring in the more distant future. b. have costs and benefits occurring in the more immediate future. c. have benefits occurring in the more immediate future and costs occurring in the more distant future. d. have benefits occurring in the more distant future and costs occurring in the more immediate future.