Suppose the Canadian central bank wants to keep the exchange rate of the Canadian dollar with the U.S. dollar constant over time. An increase in the demand for Canadian goods by American residents will lead the Canadian central bank to
A) sell American goods in exchange for Canadian dollars.
B) buy more Canadian goods with Canadian dollars.
C) increase the demand for Canadian dollars in the foreign exchange market.
D) increase the supply of Canadian dollars in the foreign exchange market.
D
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A decrease in interest rates will
A) shift the investment function relating planned investment to the interest rate to the left. B) be a movement along the investment function relating planned investment to the interest rate. C) shift the investment function relating planned investment to the interest rate to the right. D) have no impact on the investment function relating planned investment to the interest rate.
The amount of borrowed reserves is ________ related to the discount rate, and is ________ related to the market interest rate
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
Looking at the table of the four types of goods, goods that are nonexcludable consist of ______ goods.
a. private and public
b. private and common
c. public and common
d. public and club
Those who do not favor programs aimed at reducing inequality argue that these programs:
A. reduce people's incentive to work hard. B. increase the crime rates. C. prevent the economy from reaching equilibrium in the labor market. D. penalize people who are unable to work through no fault of their own.