The exchange rate of Country X is set by government decisions and maintained by government actions. Country X follows a
A. floating exchange rate policy.
B. free market exchange rate policy.
C. pegged exchange rate policy.
D. fixed exchange rate policy.
Answer: D
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Refer to Figure e. Brandon and Allie want to go on a date one summer evening. Allie is a Red Sox fan, while Brandon is a Mets fan. Both teams are playing that evening, but not against each other. Each would rather watch their favorite team, but neither can force the other to watch a particular game, and each is willing to suffer through the other's game if it means time together. If Allie watches the Mets, what is Brandon's best response?
A. Brandon should watch the Red Sox.
B. Brandon should watch the Mets.
C. It does not matter which Brandon watches; he is indifferent between the Red Sox and the Mets.
D. Brandon should not consider Allie's choice when making her decision.
If the marginal propensity to consume was 0.75, it would mean that:
A. $0.75 of an additional $1 of individuals' after-tax income is spent on consumption. B. $0.75 of an additional $1 of individuals' after-tax income is saved. C. $0.25 of an additional $1 of individuals' after-tax income is spent on consumption. D. None of these is true.
An increase in the demand for rubles causes the ruble to appreciate
a. True b. False Indicate whether the statement is true or false
Using Figure 2 below, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:
A. consumption spending increases.
B. investment decreases.
C. imports increase.
D. exports decrease.