Countries like Malaysia and Thailand that tried to maintain overvalued currencies in the late 1990s inevitably faced increased
a. balance of payments surpluses.
b. runs on their currencies.
c. balance of payments deficits.
d. both b and c.
d
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When Federal Reserve Banks add to their holdings of government securities,
A) commercial banks must reduce their net lending. B) commercial bank reserves increase. C) the Fed is extending less credit to the economy. D) the stock of money declines.
Equilibrium real income is more stable in the face of aggregate autonomous expenditure variability under
A) a floating exchange rate. B) a pegged exchange rate. C) a fixed exchange rate. D) perfect capital mobility systems.
Negative marginal utility means that
a. total utility is also negative b. marginal utility increases as additional units are consumed c. the price of the product increases as additional units are consumed d. the total revenue spent on the product decreases as more of the product is purchased e. total utility decreases as additional units are consumed
In a free, competitive market, what is the rationing mechanism?
a. seller bias b. buyer bias c. government law d. price