Suppose a bottle of wine produced in France sells for 35 euros. If the exchange rate between euros and dollars is €1 = $1.30, how much will an American pay for the bottle of wine in America?
A. $130.00.
B. $45.50.
C. $35.00.
D. $26.92.
Answer: B
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A) purchasing commercial paper B) selling long-term securities C) monitoring the value of collateral D) charging consumers particularly low interest rates
Overfishing and extinction of species arise because of:
a. an abundance of natural resources. b. communist countries. c. the lack of incentive to take care of these species. d. private ownership of these resources. e. a high degree of economic freedom in all countries.
Which of the following will cause an increase in aggregate demand?
A. Restrictive fiscal policy. B. An increase in the reserve requirement. C. Expansionary monetary policy. D. The sale of bonds by the Fed.
Which of the following is most likely to increase aggregate supply?
A. An increase in safety regulations. B. A decrease in the capital gains tax. C. An increase in the minimum wage. D. An increase in government borrowing.