Arbitrage operations can be executed
A) in foreign exchange markets.
B) in goods markets.
C) Both A and B.
D) None of the above.
C
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Movie theaters are able to offer discounts to senior citizens because:
a. the elderly deserve lower prices because of their contributions to society. b. senior citizens have the most inelastic demand. c. theaters can separate senior citizens from other customers, and it is easier to prevent resale. d. senior citizens cannot see the movie very well because of poor eyesight. e. senior citizens are frequent visitors to the movie theaters.
The main function of the Federal Open Market Committee is
a. to control the printing of currency. b. to determine the path of tax rates. c. to use open market operations to control the nation's money supply. d. to create and issue bonds on behalf of the Treasury. e. to oversee economic activity in the various Federal Reserve districts.
Suppose the Dutch economy is in equilibrium in 2002 and intended investment in Holland in 2002 was 1,000 euros. Now suppose in 2003, the intended investment by Dutch businesses increased to 1,300 euros. You would know then that in Holland,
a. business inventories fell but there will be no change in its equilibrium level of national income b. business inventories fell along with its equilibrium level of national income c. business inventories fell but its equilibrium level of national income rose d. business inventories rose along with its equilibrium level of national income e. business inventories rose but there will be no change in its equilibrium level of national income
If the price of inputs rises and personal income taxes rise:
a. Price index rises, and real GDP rises. b. Price index rises, and real GDP falls. c. Price index rises, and the change in real GDP is uncertain. d. Price index falls, and real GDP rises. e. The change in price index is uncertain, and real GDP falls.