If the Fed sets a target exchange rate that is higher than the current exchange rate, then
A) the Fed must sell dollars.
B) the Fed must buy dollars.
C) the Fed can do nothing in the short run.
D) will try to print more dollars for foreign distribution.
B
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A government program that reduces land under cultivation can help farmers by raising prices but hurts consumers
a. True b. False Indicate whether the statement is true or false
Suppose that the equilibrium price of T-shirts increases and the equilibrium quantity of T-shirts decreases. This is best explained by:
A. an increase in the demand for T-shirts. B. a decrease in the supply of T-shirts. C. a decrease in the demand for T-shirts. D. an increase in the supply of T-shirts.
The highest Herfindahl-Hirschman index
A. is in Industry X.
B. is in Industry Y.
C. is in Industry Z.
D. cannot be determined.
?
Exhibit 10A-3 Macro AD-AS Model
In Exhibit 10A-3, the level of real GDP represented by Yp:
A. ?is potential real GDP for this economy. B. ?indicates that the economy is experiencing zero inflation. C. indicates that the economy is experiencing a recessionary gap. D. ?would be associated with considerable unemployment.