A country that is experiencing a balance of payments surplus and decides to keep its exchange rate at the current level will:
A. experience a trade deficit.
B. gain foreign currency.
C. buy more of its own currency.
D. lose foreign currency.
Answer: B
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With state and multistate lotteries, winners are typically given the choice between a lump sum payment today or a 20 year series of annuities. How should a winner decide which is better?
What will be an ideal response?
Which of the following is a major criticism of a monopoly as a cause of allocative inefficiency?
a. A monopolist fails to expand output to the level where the consumers' evaluation of an additional unit is just equal to its opportunity cost b. A monopolist has no incentive to produce efficiently, because even if it pays no attention to the costs of production, it will be guaranteed an economic profit c. A monopolist will always make profits therefore providing an incentive to keep prices at the level that maximizes consumer surplus d. A monopolist has an advantage because it can purchase the resources in a competitive market e. Consumer surplus would no longer be equal to producer surplus
If Sally purchases a particular compact disk, it is because the opportunity cost is higher than it would be for any other compact disk
a. True b. False
In the short-run, if the Federal Reserve increases interest rates, then consumption and investment ________, planned aggregate expenditure ________, and short-run equilibrium output ________.
A. increase; decreases; decreases B. decrease; decreases; decreases C. increase; increases; increases D. increase; increases; decreases