In June 2008, $1 bought 0.5 pounds and in October, $1 bought 0.65 pounds. As a result of this change, ________ between June and October
A) the demand for dollars increased
B) the dollar appreciated and the quantity of dollars demanded decreased
C) the dollar depreciated and the quantity of dollars demanded decreased
D) the demand for dollars decreased
B
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The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is
A) zero. B) the triangle ABE. C) the triangle BCE. D) the triangle ACE. E) the triangle BCE minus the triangle ABE.
In Zealand, banks' desired reserve ratio is 20 percent and there is no currency drain. The money multiplier equals ________
A) 0.50 B) 0.20 C) 20.0 D) 5.0
Why did the Fed shift its policy target towards the federal funds rate
What will be an ideal response?
When wages and prices are completely flexible ________
A) inflation is determined by expected inflation and price shocks B) labor hoarding occurs C) unemployment is disconnected from the real economy D) all of the above E) none of the above