Countries that fix the foreign exchange value of their currencies, while following a highly expansionary monetary policy, will
a. be unable to maintain both the fixed-exchange rate and the full convertibility of their currency.
b. generally experience rapid rates of economic growth.
c. make it easier for their citizens to engage in international trade.
d. have relatively low rates of domestic inflation.
A
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If a college wanted to increase its revenues from tuition payments, should it increase the tuition of day and evening students alike?
What will be an ideal response?
Monopolistic competitors and perfect competitors are alike in
A. having horizontal demand curves. B. zero economic profit in the short run. C. zero economic profit in the long run. D. relying on advertising to attract buyers to their products.
"I'm not going to pay for the good if, once produced, the good cannot be denied to anyone." This statement is most relevant to
A) negative externalities. B) positive externalities C) private goods. D) nonexcludable public goods. E) the issue of rivalry versus nonrivalry in consumption.
Marni’s country is rich in timber and has large sawmills. Carlos’s country has little land, but the government has invested heavily in education and technology. The principle of comparative advantage means that ______.
a. Marni’s country will grow faster than Carlos’s because it has more natural resources b. both countries will benefit if they each specialize production based on their resources and trade with each other c. Carlos’s country will have a higher economic growth rate than Marni’s d. these countries operate on different economic tracks and cannot be directly compared