If a country's budget deficit increases, then in the market for foreign-currency exchange,
a. the supply of its currency shifts right, so the exchange rate falls.
b. the demand for its currency shifts right, so the exchange rate rises.
c. the supply of its currency shifts left, so the exchange rate rises.
d. the demand for its currency shifts left.so the exchange rate falls.
c
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Based on this figure, if the official fixed value of krone is fixed at $0.15 per krone, then the Norwegian krone is ________ and the international reserves of Norway will ________ krone per period. 
A. undervalued; increase by 2,000 B. undervalued; increase by 5,500 C. overvalued; decrease by 2,000 D. overvalued; decrease by 5,500
Empirical studies on velocity and money demand have limited usefulness for monetary policy because they often ignore
A) money supply effects. B) interest rate effects. C) inflation effects. D) lags in monetary policy.
Consider the two graphs above. Suppose rising fuel costs makes it more expensive to move goods to and from warehouses. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Due to resource scarcity,
a. some economic activities have an opportunity cost b. all economic activities have an opportunity cost c. no economic activities have an opportunity cost d. economic activities have opportunity costs equal to their market prices e. economic activities have opportunity costs generally lower than their market prices