If the central bank buys foreign assets,
A) the domestic monetary base will decline.
B) domestic short-term interest rates will decline.
C) the foreign-exchange value of the domestic currency will rise.
D) its holdings of international reserves will rise.
D
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If two goods have a ________ cross-price elasticity of demand, then the antitrust agencies can conclude that the products ________ compete in the same market as strong substitutes.
A) large; do not B) small; do C) zero; do D) large; do
In terms of market failure, underallocation means the economy ______.
a. is controlled by a single-seller b. is controlled by the government c. has produced too little d. has produced too much
The practice of spreading one's wealth over a variety of different financial investments in order to reduce overall risk is called:
A. diversification. B. risk reservation. C. following the risk premium. D. allocation.
A rational consumer maximizes his or her:
A. wealth. B. total utility. C. marginal utility. D. profit.