If the Fed decides to maintain a fixed euro/dollar exchange rate when they purchase euros:
A. they increase the number of dollars.
B. the domestic money supply increases.
C. downward pressure is put on domestic interest rates.
D. all of the answers given are correct.
Answer: D
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As wealth decreases, which of the following is likely to account for a larger fraction of a saver's portfolio?
A) corporate stock B) corporate bonds C) U.S. government securities D) checking account balance
Which of the following is a correct statement about the labor market?
a. Workers determine the supply of labor, and firms determine the demand for labor. b. Workers determine the demand for labor, and firms determine the supply of labor. c. Workers determine the supply of labor, and government determines the demand for labor. d. The forces of supply and demand, while present in the labor market, have nothing to balance in that market.
In the short run, marginal cost is increasing when
A) MPL is decreasing. B) MPL is increasing. C) APL is increasing. D) APL is decreasing.
Relative to uniform-price policy, price discrimination across segmented markets (sometimes called third-degree price discrimination):
a. always reduces welfare. b. always increases welfare. c. may increase welfare if total output falls. d. may increase welfare if total output rises.