In foreign exchange markets, who demands dollars and who supplies dollars?
What will be an ideal response?
Foreign residents buying U.S. goods, services, or assets demand dollars and U.S. residents buying foreign goods, services, or assets supply dollars. In foreign exchange markets, the supply of dollars is a demand for foreign currency and the supply of a foreign currency is a demand for dollars.
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The recent trend internationally has been for the executive and legislative branches of elected governments to get more control over monetary policy, as has been the case in countries such as the United States
Indicate whether the statement is true or false
As air is a _____, pollution tends to occur
a. common resource b. private good c. club good d. merit good
As the size of government increases as a share of the economy,
a. the burden of deadweight losses of taxation generally diminishes. b. the rate of return derived from projects undertaken by the government will tend to increase. c. the government generally becomes more heavily involved in unproductive and even counterproductive activities. d. the activities of government are generally limited to protective functions such as public safety , national defense, and provision of a limited set of public goods.
The decision to form a currency union is similar to the decision to peg; however, the currency union requires:
A) a lower level of commitment and therefore requires a lower net benefit. B) a higher level of commitment and therefore requires a higher net benefit. C) more political integration and an agreement to limit trade. D) the loss of political autonomy and is therefore riskier.