Under a flexible exchange rate system, there is no need for foreign exchange reserves.
Answer the following statement true (T) or false (F)
True
There is no need to use foreign exchange reserves to maintain the exchange rate because the market is performing this function.
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When the Federal Reserve increases its target rate of inflation, it will set a ________ real interest rate at every inflation rate and the aggregate demand curve will ________.
A. higher; shift to the right B. lower; shift to the left C. higher; shift to the left D. lower; shift to the right
In order to draw an individual's budget line, we must know
A) prices and preferences. B) prices and income. C) income and preferences. D) prices, income, and preferences.
For small armies, a volunteer army would be less costly
a. True b. False
According to Coasian reasoning, if negotiation is costless:
a. irrespective of the initial distribution of rights, the efficient outcome will minimize the net benefit of the group. b. the efficient outcome will minimize the net benefit of the individual who has more rights compared to the others in the group. c. irrespective of the initial distribution of rights, the efficient outcome will maximize the net benefit of the group. d. the efficient outcome will maximize the net benefit of the individual who has more rights compared to the others in a group.