A nation running a persistent balance of payments surplus while part of a fixed exchange rate system would be required to __________ international reserves in an effort to prevent its currency from __________
A) amass; appreciating
B) amass; depreciating
C) pay out; appreciating
D) pay out; depreciating
A
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The self-interest model predicts that the outcome of the "ultimatum bargaining game" in which the allocator starts with $20 is that
A. the allocator will offer the receiver $0.01 and will propose to keep $19.99 for himself. B. the receiver will always reject the allocator's proposal. C. the allocator will offer the receiver $10 and keep $10 for himself. D. the allocator will always keep the full $20.
Americans choose cola over other flavors 70 percent of the time. Analysts say this is because cola's flavor is more robust and durable. Orange soda, for example, suffers from flavor fatigue faster than cola. Also, because cola contains caffeine, people may be addicted to the stimulant. Which panel in Figure 5-1 best illustrates these facts?
a. 1
b. 2
c. 3
d. 4
When a perfectly competitive firm experiences zero economic profits
A. the high barriers to entry prevent further competition. B. existing firms exit the industry. C. additional firms enter the industry. D. firms have no incentive to exit or enter the industry.
Refer to the information provided in Figure 1.5 below to answer the question(s) that follow.
Figure 1.5Refer to Figure 1.5. As income increases, consumption increases, but for each additional increase in income, consumption increases by a larger and larger amount. If consumption is graphed on the vertical axis and income is graphed on the horizontal axis, the relationship between consumption and income would look like which of the following Panels?
A. A B. B C. C D. D