Under the Gold Standard,
A) exchange rates could float.
B) real interest rates were fixed.
C) real exchange rates were fixed.
D) nominal interest rates were fixed.
E) none of the above
E
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The Index of Economic Freedom measures: a. market orientation
b. market concentration. c. price elasticity. d. market power.
If the public decides to hold less currency and more deposits in banks, bank reserves
a. decrease and the money supply eventually decreases. b. decrease but the money supply does not change. c. increase and the money supply eventually increases. d. increase but the money supply does not change.
Which of the following statements is false?
A) The issuer of a bond is a borrower. B) The person who buys a bond is a lender. C) Interest earned on corporate bonds is exempt from federal income taxes. D) The coupon rate on a bond is the percentage of the face value that the bondholder receives annually until the bond matures.
What causes a country to specialize in certain products?
(A) The ability to trade with other nations. (B) The interests of the citizens. (C) The resources of the nation. (D) The money it can earn from producing particular products.