Refer to the given information. If the price level P is 4, Q is:
Answer the question on the basis of the following information for a hypothetical economy. All
values are in nominal terms.
M = $100
V = 2
C a = $160
X n = $10
G = $10
A. 50.
B. 100.
C. 200.
D. 500.
A. 50
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The maximum money that can be created by the entire banking system is equal to a multiple of its excess reserves
a. True b. False Indicate whether the statement is true or false
A recent article in the Financial Times summarizes and criticizes the standard approach to focusing responsibility for the Eurozone debt crisis, for which it blames:
A) the operations of the ECB. B) the restraint on borrowing, which is an integral part of the Eurozone convergence criteria. C) the irresponsibility of the ECB for funding domestic bank purchases of their government's bond issues. D) speculators, irresponsible fiscal deficits, and poor risk assessment.
Suppose that the United States and Italy both produce wine and shoes. In the United States, wine sells for $10 a bottle and shoes sell for $40 a pair. In Italy, wine sells for 15 euros a bottle and shoes sell for 20 euros a pair. Given this information, trade will flow in both directions if the price of a dollar is between
A. 1.5 and 2.5 euros. B. .5 and .75 euro. C. .67 and 2 euros. D. 2.0 and 3.0 euros.
In a graph showing the market supply and demand for British pounds in terms of U.S. dollars, the supply-of-pounds curve is upsloping because:
A. Fewer British pounds can be purchased per dollar if U.S. dollars become more expensive B. Fewer U.S. dollars can be purchased per pound if the British pounds become less expensive C. The British will purchase more U.S. goods or services when the dollar price of pounds rises D. The British will purchase more U.S. goods or services when the dollar price of pounds falls