During the Great Depression in the United States between 1930 and 1933, banks' reserve/deposit ratio ________ and the amount of currency held by the public ________, while the money supply ________.
A. decreased; decreased; decreased
B. increased; increased; decreased
C. increased; increased; increased
D. decreased; decreased; increased
Answer: B
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Which of the following is true of a country with a managed exchange rate system?
A) The central bank of the country always pursues contractionary monetary policy. B) The current account balance of the country is always positive. C) The current account balance of the country is always negative. D) The central bank of the country actively intervenes to influence the exchange rate.
When Jim adds $1,000 worth of farm equipment to his production process, he finds that his corn output increases from 200 to 350 bushels. If the price of corn is $2 per bushel, the marginal revenue product of capital is
a. $10 b. $150 c. $300 d. $350 e. $1,000
Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market?
a. The U.S. overall demand for foreign exchange, and British pounds, in particular, will increase. b. The U.S. overall demand for foreign exchange, and British pounds, in particular, will decrease. c. The U.S. demand for British pounds will increase, but the overall demand for foreign exchange will probably decrease. d. The U.S. demand for British pounds will decrease, but the overall demand for foreign exchange will probably increase.
A Giffen good is a good for which an increase in the price
a. decreases the quantity supplied. b. increases the quantity supplied. c. decreases the quantity demanded. d. increases the quantity demanded.