Which of the following indicates taking an action to reverse the effect of official intervention on the domestic money supply?
A. Playing by the "rules of the game"
B. Implementing capital controls
C. Sterilization
D. Adjusting the country's interest rates
Answer: C
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A student wrote: "A production quota is inefficient because it results in overproduction
At the quota quantity, marginal social cost is equal to the market price and marginal social benefit is less than the market price, so marginal social cost exceeds marginal social benefit." If you were the instructor, how would you correct this statement?
Who receives the goods and services produced in the United States depends largely on
A) how income is distributed. B) what goods and services are produced. C) government redistribution. D) how the goods and services are produced.
A production quota program:
A. places limitations on the quantity that individual consumers can purchase. B. is a way to raise prices without causing the overproduction that occurs under a price support program. C. is like a subsidy in that it reduces the price that buyers pay for a good. D. places minimums on the quantity that individual firms must produce.
The limits of the terms of trade are determined by the:
a. distribution costs in each country. b. stock of foreign exchange in each country. c. average total costs of producing the commodities in each country. d. opportunity costs in each country. e. currency exchange rate between the trading partners.