In the monetary small open-economy model with a fixed exchange rate, an increase in the world real interest rate
A) increases domestic output and has no effect on the domestic price level.
B) decreases domestic output and has no effect on the domestic price level.
C) increases the domestic price level and has no effect on domestic output.
D) decreases the domestic price level and has no effect on domestic output.
A
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Which of the following industries would most likely represent monopolistic competition?
a. clothing b. wheat c. water utilities d. soft drinks
Which of the following services is performed by the regional Federal Reserve banks?
A. Providing currency to private banks. B. Providing loans to individuals. C. Holding deposits for individuals. D. Check cashing for large nonbank corporations.
In the United States there were legal reserve requirements on time and savings deposits during most of the post-World War II period. Therefore, the money multiplier for the M1 definition was
a. smaller when time and saving deposits increased. b. smaller when time and saving deposits were assumed to be fixed. c. larger when time and saving deposits increased. d. smaller when time and saving deposits decreased.
In this case the firm should
a. Produce both the versions and price discriminate since doing so gives a higher revenue b. Produce only the no-brand version c. Produce only the hi-end professional series d. Exit the marketplace