The annual membership fees of the 185 member countries of the IMF are called:
a. annuities.
b. quotas.
c. vetos.
d. conditionalities.
e. petrodollars.
b
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The action of arbitrage is
A) the process of buying a currency cheap and selling it dear. B) the process of buying a currency dear and selling it cheap. C) the process of buying and selling currency at the same price. D) the process of selling currency at different prices in different markets. E) the process of buying a currency and holding onto it to take it off the market.
If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
a. 1. b. 2. c. 4. d. 9.
Suppose Sam's Shoe Co. makes one kind of shoe. An example of a fixed cost for this company would be:
A. the needles for the sewing machines that need to be replaced after sewing every 1,000 pairs. B. the leather needed to make the shoes. C. the lease for the factory building. D. All of these are examples of fixed costs.
A shift occurs in the supply curve for salt when:
A. the price of salt increases.
B. improvements are made in the production process.
C. salt is found to be associated with high blood pressure.
D. consumers expect the price of salt to increase in the future.