The impact on the foreign exchange market for dollars resulting from the Fed selling euros will be:
A. an increase in the supply of dollars.
B. a decrease in the supply of dollars.
C. a decrease in the interest rate in the U.S.
D. a decrease in the demand for dollars.
Answer: D
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Refer to Scenario 13.16. If Gooi moves first, the payoff in equilibrium will be
A) $150, $0. B) $150, $300. C) $400, $150. D) $50, $50. E) $650, $450.
Mistakenly adding the value of a good or service twice by counting the intermediate goods and services in GDP is known as: a. value added
b. double counting. c. factor payments. d. net depreciation.
One shortcoming of real GDP as an indicator of society's social well-being is that it fails to take into account the:
A. non-market production. B. change in the price level. C. growth in productivity. D. increase in the quantity of goods.
Price floors are
A. sometimes associated with surpluses. B. always associated with surpluses. C. sometimes associated with shortages. D. always associated with shortages.