When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:
a. a loose monetary policy.
b. a contractionary monetary policy.
c. a expansionary monetary policy.
d. a quantitative easing policy.
b. a contractionary monetary policy.
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The three broad reasons for saving, as identified by economists, relate to:
A. the life-cycle, precaution, and bequests. B. national, public, and private production. C. capital gains, capital losses, and deficits. D. consumption, investment, and exports.
When a country imports a good or service from the rest of the world, the consumer gains because the greater the ________ in price and ________ in quantity bought, the greater is the ________ to the consumer
A) fall; decrease; gain B) rise; increase; gain C) fall, increase; gain D) fall; increase; loss E) rise; decrease; gain
In developing countries, exchange rates tend to be
A) floating with some government intervention. B) pegged. C) hard to tell from the data. D) run by currency boards. E) flexible.
Which of the following firms have no market power?
A. clothing companies B. fast food chains such as McDonald's C. theme parks D. gold panners during the gold rush