Which of the following is true of capital controls?
A. They are socially inefficient methods of maintaining a fixed exchange rate.
B. They are key to the success of a fixed exchange rate regime.
C. They can be optimal when a disequilibrium is fundamental.
D. They cannot be used to maintain a fixed exchange rate.
Answer: A
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What is a mixed strategy? Describe a mixed strategy that would be a Nash equilibrium for the Copycat Game, and indicate why neither player would want to deviate from that mixed strategy.
What will be an ideal response?
Under a situation of asset market equilibrium,
A) the quantity of money supplied equals the quantity of money demanded. B) the quantity of money supplied equals the quantity of nonmonetary assets demanded. C) the quantity of nonmonetary assets supplied equals the quantity of monetary assets demanded. D) the quantity of money supplied equals the quantity of nonmonetary assets supplied.
Everyone agrees that the government needs to provide us with more merit goods
Indicate whether the statement is true or false
Suppose a market is initially in equilibrium and supply increases. The consumer surplus will:
a. be higher since the price is lower and equilibrium moves down along the demand curve. b. be higher, since the price is lower and will move you down along the demand curve. c. be higher since the price is lower and equilibrium moves up along the demand curve. d. be lower since the price is lower and equilibrium moves up along the demand curve.