If the Fed decides to maintain a fixed euro/dollar exchange rate when they sell euros:
A. there will be pressure on domestic interest rates to increase.
B. the domestic money supply will increase.
C. they will have to impose capital controls.
D. this will increase banking system reserves.
Answer: A
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When total revenue reaches its peak (elasticity equals 1), marginal revenue reaches
A) 1. B) zero. C) -1. D) Cannot be determined from the information provided
Productivity growth in the service sector
a. is notoriously difficult to measure. b. is comparable to productivity growth in agriculture. c. has been slow compared with productivity growth in manufacturing. d. Both a and b are correct. e. Both a and c are correct.
The amount by which government purchases and transfers exceed tax revenues is known as the
A. primary current deficit. B. primary deficit. C. primary surplus. D. government debt.