If a central bank engages in an unsterilized foreign-exchange intervention with the intention of raising the foreign-exchange value of its currency,

A) the central bank's holdings of international reserves will fall.
B) the domestic money supply will rise.
C) domestic interest rates will fall.
D) it will buy foreign assets.


A

Economics

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Adkins Air is the only seller offering service directly from Milwaukee to Greensboro. The market is contestable. Thus the Nash Equilibrium for a game between Adkins Air and a potential entrant is when the potential entrant

A) enters and Adkins earns a normal profit. B) enters and Adkins earns an economic profit. C) does not enter and Adkins earns a normal profit. D) does not enter and Adkins earns an economic profit.

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In an environment of tournament pay, it is quite likely that marginally more productive employees will receive

a. more than their marginal revenue product, as do less productive employees. b. less than their marginal revenue product, while less productive employees receive more than theirs. c. more than their marginal revenue product, while less productive employees receive less than theirs. d. less than their marginal revenue product, as do less productive employees.

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When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:

A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.

Economics

Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap.  

A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary

Economics