Under a system of fixed exchange rates, excess demand by Germans for the Swiss franc represents a potential
A. German balance-of-payments surplus with Switzerland.
B. Swiss trade surplus with Germany.
C. German balance-of-payments deficit with Switzerland.
D. German trade surplus with Switzerland.
Answer: C
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A decrease in the fractional reserve requirement ratio will
A) Alter the slope of the money supply curve. B) Shift the money supply curve to the left. C) Will decrease the money multiplier. D) None of the above.
When marginal product is rising
A) total product is falling. B) marginal cost is falling. C) marginal cost is rising. D) average fixed cost is rising.
What limits the quantity of money that the banking system can create?
What will be an ideal response?
When a firm is experiencing increasing marginal costs, it implies
a. There are constant marginal productivity b. There are decreasing average costs c. There are decreasing marginal productivity d. There are increasing marginal productivity