An unsterilized intervention in which the central bank sells foreign assets to purchase domestic currency will result in
A) higher domestic interest rates.
B) lower domestic interest rates.
C) an increase in the money supply.
D) lower domestic interest rates and an increase in the money supply.
A
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If Country A has an absolute advantage over Country B in the production of every commodity:
a. mutual gains from trade between Country A and Country B would be impossible. b. Country B would be able to gain from trade but not country A. c. the joint output of the two countries could not be increased through specialization and exchange. d. mutual gains from trade would still be possible.
Look at the production schedule below:
Workers 0 1 2 3 4 5 Output 0 45 80 100 130 165 Which property of a standard production function does it violate? A) constant returns to scale B) decreasing marginal product of capital C) decreasing marginal product of labor D) production increasing in labor
If the demand for bonds increases, the
a. price and quantity of bonds in existence both increase b. price of bonds increases, but the quantity of bonds in existence decreases c. price of bonds increases, but the quantity of bonds in existence remains unchanged d. interest rate and quantity of bonds in existence both increase e. interest rate increases, but the quantity of bonds in existence remains unchanged
On the 4 degree line diagram, for points that lie below the 45 degree line
What will be an ideal response?