If a central bank wants to keep the value of its home currency fixed in the foreign exchange market, then an increase in the demand for its home currency will lead the central bank to
A. sell its home currency.
B. do nothing.
C. sell foreign currencies.
D. buy its home currency.
Answer: A
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A merger between firms in which one firm purchases an input from the other is called a
A) conglomerate merger. B) horizontal merger. C) vertical merger. D) none of the above.
There are no idle resources, the multiplier is operative, and autonomous spending rises. It follows that
A) Real GDP will not increase. B) Real GDP will rise. C) prices will rise. D) a and c E) a, b, and c
One reason Henry Ford is famous was for instituting:
A. efficiency wages in an effort to reduce worker absenteeism. B. assembly lines in an effort to reduce worker turnover. C. minimum wages in an effort to increase productivity. D. unemployment benefits in response to the first unionized workers.
Refer to the above table. The multiplier in this economy is:
Answer the following question based on the table below which illustrates the multiplier process resulting from an autonomous increase in investment by $5.
A. 2
B. 3
C. 4
D. 5