An increase in the U.S. demand for the Mexican peso
A) causes an increase in the U.S. dollar price of a Mexican peso.
B) causes the Mexican peso to appreciate.
C) causes the U.S. dollar to depreciate.
D) causes Mexican goods to be cheaper.
D
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Answer the following statement(s) true (T) or false (F)
1. According to the textbook application, the United States pays a higher tax rate on gasoline than any nation in the European Union (EU). 2. If firm 1 and firm 2 each face an marginal abatement cost of MAC1 = 5A1 and MAC2 = 3A2, respectively, and if the combined abatement level must be 16 units, then firm 1 must abate 6 units and firm 2 must abate 10 units in order to achieve the cost-effective solution. 3. Suppose that for some abatement equipment market, the MSB = 525 – 1.2Q and MPB = 325 – 0.8Q, then the Pigouvian subsidy for that market must equal 200 – 0.4Q at QE to achieve an efficient outcome. 4. Suppose that for some abatement equipment market, the MSB = 502 – 1.2Q, and MPB = 302 – 0.8Q, then the Pigouvian subsidy must equal 804 – 2Q at the efficient output level to achieve the efficient output level. 5. Compared to an abatement equipment subsidy, a per-unit subsidy on abatement might be less disruptive to the market because it is defined without any influence as to how abatement is achieved.
Refer to Figure 17-1. Suppose that the economy is currently at point A. If the Federal Reserve engaged in expansionary monetary policy, where would the economy end up in the short run?
A) It would remain at point A. B) point B C) point C D) point D E) point E
Goods that are neither rival in consumption nor excludable are:
A. a common resource. B. a private good. C. a public good. D. an artificially scarce good.
Which of the following does the U.S. president appoint and the U.S. Senate confirm?
a. members of the Board of Governors and regional Federal Reserve Bank Presidents. b. members of the Board of Governors but not the regional Federal Reserve Bank Presidents. c. the regional Federal Reserve Bank Presidents, but not members of the Board of Governors. d. neither members of the Board of Governors nor regional Federal Reserve Bank Presidents.