Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?
a. Huge current account deficit
b. Currency pegged to the dollar
c. Floating rate policy
d. Adherence to the old gold standard
b
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If the price of a product increases, we would expect
A) the level of demand to decrease. B) quantity supplied to increase. C) the level of supply to increase. D) an increase in quantity demanded.
Central planning is an efficient method for making coordination decisions.
Answer the following statement true (T) or false (F)
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). According to this Application, the prices which were tracked in the retail catalogs exemplified the macroeconomic concept of the short run, a period of time in which:
A. price changes are significant because the aggregate supply curve is vertical. B. prices never change because the aggregate demand curve is vertical. C. prices change frequently because of changes in aggregate supply. D. prices don't change very much, implying that the aggregate supply curve is relatively flat.
Which of the following physical relationships might generate economies of scale?
A. Each lift truck requires one lift truck driver. B. Proportionally larger pipes can transport more than a proportional increase in oil. C. Larger equipment tends to weigh more and use more fuel on a per-unit-of-output basis. D. A doubling of all inputs leads to a doubling of output.