Which system would be accompanied by occasional currency interventions by central banks to stabilize or alter rates to avoid persistent balance of payments deficits or surpluses?
A. The gold standard
B. Fixed exchange rates
C. Flexible exchange rates
D. Managed floating exchange rates
D. Managed floating exchange rates
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If the Fed sells U.S. government securities in the open market, gross domestic product:
a. increases because the resulting increase in the interest rate leads to a decrease in investment. b. increases because the resulting decrease in the interest rate leads to an increase in investment. c. decreases because the resulting increase in the interest rate leads to a decrease in investment. d. decreases because the resulting increase in the interest rate leads to an increase in investment. e. decreases because the resulting decrease in the interest rate leads to an increase in investment.
International trade
A. Redistributes income from import-competing industries to export industries. B. Benefits the domestic industries that compete with the imported products. C. Reduces the level of income for export industries. D. Causes prices of products to rise because of the transportation costs.
If a monopolistically competitive firm is producing 50 units of output where marginal cost equals marginal revenue, total cost is $1,674 and total revenue is $2,000, its average profit is
A) $326. B) $40. C) $6.52. D) impossible to determine without additional information.
The Great Depression that started in 1929 was
A) confined only to the United States. B) confined only to the United States and Britain. C) confined only to the United States and Europe. D) a global phenomenon. E) confined only to the Americas.