Refer to Figure 12.6. Under a fixed exchange rate system, if the central bank can increase the output gap with expansionary policy and still maintain the fixed exchange rate, this would best be represented by a movement from ________ in Panel (a) and
a movement from ________ in Panel (b). A) point A to point B; point X to point Y
B) point C to point A; point X to point Y
C) point D to point C; point Y to point X
D) point B to point D; point Y to point X
A
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Efficiency in risk bearing implies that
A) risk is completely eliminated. B) the least risk-averse party bears most of the risk. C) the most risk-averse party bears most of the risk. D) all of the risk is borne by just one of the parties regardless of the degree of risk aversion.
Given the data in the above table, what is the marginal revenue when the 15th unit is sold?
A) $7.00 B) $5.00 C) $3.00 D) $1.00
Basic supply and demand analysis can be used to explain how externalities lead to environmental problems
a. True b. False Indicate whether the statement is true or false
For a particular good, an 8 percent increase in price causes a 12 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. There are no close substitutes for this good. b. The good is a necessity. c. The market for the good is broadly defined. d. The relevant time horizon is long.