Under the Bretton Woods exchange rate system, set up in 1944, which of the following was true?
A) Foreign central banks could sell their dollars to the American government in exchange for gold.
B) Americans could sell their dollars to the American government in exchange for gold.
C) Americans could sell their dollars to foreign central banks in exchange for gold.
D) Americans could sell their dollars to the American government in exchange for silver.
A
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true?
A) If the price of pecans is $3 producers will sell 12,000 pounds of pecans but this output will be economically inefficient. B) If the price of pecans is $9 consumers will purchase more than the economically efficient output. C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output. D) If the price of pecans is $3 the output will be economically efficient but there will be a deadweight loss.
Paying into a pension fund while you are earning wages and salaries is equivalent to
A. borrowing money. B. lending money. C. withdrawing from a savings account. D. paying off debt.
Joslynn decreases her consumption of Good A after the price of Good B decreased. For Joslynn
A. Good A is an inferior good. B. Good A and Good B are substitutes. C. Good A and Good B are complements. D. Good B is an inferior good.
A fiduciary monetary standard exists when the value of a currency
A. cannot be determined. B. increases with inflation. C. depends upon the public's confidence that the currency can be exchanged for goods and services. D. is convertible to a fixed quantity of gold.