Which of the following statements is correct?
A. Under the gold standard, exchange rates fluctuate without restraint and thereby correct any international balance of payment disequilibrium
B. If nations X and Y are on the international gold standard, and X's exports to Y exceed X's imports from Y, then gold will flow from X to Y
C. If the dollar price of pounds rises, then the pound price of dollars will also rise
D. American exports tend to increase, while American imports tend to decrease, the supplies of foreign monies owned by American banks
D. American exports tend to increase, while American imports tend to decrease, the supplies of foreign monies owned by American banks
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
If the legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others, which of the following is most likely to be encouraged?
a. productive activities b. a high rate of investment c. rent-seeking and unproductive activities d. competitive markets
An industry with a concentration ratio of 100 would have ___________ firms.
Fill in the blank(s) with the appropriate word(s).
Monetary policy is not the only type of policy that affects interest rates.
Answer the following statement true (T) or false (F)