Suppose the aggregate price level in France is 120, the aggregate price level in Canada is 100, and the real exchange rate between these two countries is 5 . The number of Euros per Canadian dollar is _____
a. 2.5
b. 3.2
c. 6
d. 2.4
c
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Use the following diagram to answer the next question.
Which of the following would cause a move from MS1 to MS2?
A. The banking system decides to hold less excess reserves and make more loans. B. The federal funds rate increases. C. The discount rate is increased by the regional Federal Reserve banks. D. The Federal Open Market Committee decides to sell bonds.
Economics is the study of ________ and its ________ (Fill in the blanks:)
)A) greed; desirable consequences B) choice; unintended consequences C) money; financial consequences D) competition; legal consequences
Unlike firms that sell stock in financial markets, which are known as ________ firms, companies which do not sell stock in financial markets are known as ________ firms
A) public; private B) corporate; proprietary C) open; closed D) stock market; bond market
When the price is $5
A. quantity supplied is greater than quantity demanded and, therefore, price must rise to get to equilibrium.
B. quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium.
C. quantity demanded is greater than quantity supplied and, therefore, price must rise to get to equilibrium.
D. quantity demanded is greater than quantity supplied and, therefore, price must fall to get to equilibrium.