A country that fixes a price for its currency that is above the market price will:
A. eventually increase the value of its currency.
B. accumulate official reserves.
C. increase its money supply.
D. lose official reserves.
Answer: D
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
The empirically observed backward-bending labor supply curve cannot arise from homothetic tastes.
Answer the following statement true (T) or false (F)
Total utility is maximized when a consumer has spent all of his or her income and
A) spent equal amounts on all goods. B) marginal utility is maximized. C) the total utility per dollar from all goods is equal. D) the marginal utility per dollar from all goods is equal.
For a borrower in a (c,c') graph, the optimal consumption bundle is
A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors.