In the 1930s, some nations such as the United States and Britain abandoned their gold pegs by adopting ________, whereas other nations such as Germany and South American nations adopted ________.
A) floating exchange rates and open capital markets; fixed exchange rates and capital controls
B) fixed exchange rates and open capital markets; floating exchange rates without capital controls
C) fixed exchange rates and closed capital markets; floating exchange rates and closed capital markets
D) floating exchange rates with closed capital markets; floating exchange rates and open capital markets
Ans: A) floating exchange rates and open capital markets; fixed exchange rates and capital controls
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Which of the following represents a preventative measure against bank runs?
A) The President of the United States can order banks to pay depositors. B) The Federal Reserve can lower reserve requirements to ensure that banks have sufficient funds. C) The FDIC provides deposit insurance. D) None of the above is correct.
The 95% confidence interval for the dynamic multipliers should be computed by using the estimated coefficient ±
A) 1.96 times the RMSFE. B) 1.96 times the HAC standard errors. C) 1.96, since the HAC errors are standardized. D) 1.64 times the HAC standard errors since the alternative hypothesis is one-sided.
If the value of the price elasticity of demand is 0.2, this means that:
a. a 20 percent decrease in price causes a 1 percent increase in quantity demanded. b. a 0.2 percent decrease in price causes a 1 percent increase in quantity demanded. c. a 5 percent decrease in price causes a 1 percent increase in quantity demanded. d. a 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded. e. a 100 percent decrease in price causes a 200 percent increase in quantity demanded.
Economists see value in corporate bankruptcy laws.
Answer the following statement true (T) or false (F)