If a country wants to keep the value of its currency fixed, then its central bank should
A. sell its domestic currency when there is an increase in the supply of that currency.
B. buy domestic goods when there is an increase in the supply of its domestic currency.
C. buy its domestic currency when there is an increase in the supply of that currency.
D. sell domestic goods when there is an increase in the supply of its domestic currency.
Answer: C
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As the price of dvds is raised from $3 to $5, their quantity demanded fell from 200,00 . to 180,000 . The elasticity of demand of dvds is:
a. 0.21 b. 1.28 c. 3.52 d. .65
In recent years, the U.S. labor force has experienced
a. an increase in the percentage of manufacturing workers. b. an increase in the percentage of older workers. c. an increase in the percentage of females. d. an increase in the percentage of unskilled workers.
Over the past twenty years the Fed's policy experience
a. has been good and improving b. is an indicator that economic policy is confused c. shows a focus on full employment d. reveals a lack of concern about unemployment e. has been generally poor and deteriorating
During a period of inflation, the Fed is likely to:
A. sell government securities to banks in order to reduce the amount of loanable funds. B. buy government securities from banks in order to reduce the amount of loanable funds. C. cut the discount rate to increase the affordability of loanable funds. D. cut the required reserve ratio in order to reduce the amount of excess reserves banks have to loan out.