Foreign governments are holding fewer dollars as reserves. As a result, the value of the dollar is declining. If foreign governments want to keep the U.S. dollar from declining, they could:
A. implement domestic export subsidies to accumulate dollars.
B. implement domestic contractionary monetary policies.
C. reduce their U.S. dollar holdings even more.
D. buy more U.S. dollars.
Answer: D
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Suppose that, in a sequential game, the first player chooses the strategy with the highest payoff, taking into account an optimal response from the second player. The outcome that results is
a. a Nash equilibrium. b. Pareto optimal. c. a Prisoners' Dilemma. d. a Stackelberg equilibrium.
Given the following information about AAA bank:
Bank Deposits $200,000 Loans 100,000 Required Reserves 40,000 Excess Reserves 60,000 What is the reserve ratio? A) 50 percent B) 40 percent C) 20 percent D) 10 percent
Which of the following statements is true?
a. Discrimination against women and blacks reduces the demand for these workers resulting in lower wages paid these workers. b. Discrimination is no longer a problem in the United States. c. A negative income tax system is a plan where everyone pays the same percentage of their income as taxes. d. A negative income tax system is a plan where those below a certain income receive a cash payment from government.
______________ is another term for perfect elasticity.
a. Zero elasticity b. Infinite elasticity c. Constant unitary elasticity d. Zero inelasticity