Under a fixed exchange-rate system, in order to maintain the exchange rate:
a. governments must adopt a laissez-faire economic policy.
b. all trading partners must enjoy the same level of economic growth.
c. currencies must be inconvertible.
d. the imports of one country must equal the exports of its trading partner.
e. governments must intervene in the foreign exchange market.
e
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The most basic premise of the aggregate expenditures model is that the
A. unemployment level in the economy is inversely related to the inflation rate. B. total output produced in the economy depends directly on the level of total spending. C. level of employment in the economy depends inversely on the real wage rate. D. total output produced depends mostly on the total capacity of firms to produce.
Which of the following is true of the money multiplier? a. The higher the value of the required reserve ratio, the higher the value of the money multiplier. b. The higher the value of the required reserve ratio, the lower the value of the money multiplier. c. The higher the value of deposits in banks, the lower the value of the money multiplier
d. The higher the value of deposits in banks, the higher the value of the money multiplier.
A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies
a. enhance equality. b. reduce efficiency. c. reduce the reward for working hard. d. All of the above are correct.
Platform businesses such as Google and Facebook:
A. are public utilities. B. use data to retain market power. C. do not face competition. D. are highly regulated.