Which of the following statements is most correct?
A. A fixed exchange rate policy is a lack of a monetary policy.
B. A fixed exchange rate policy is appropriate for a country that lacks a central bank.
C. A fixed exchange rate policy is a monetary policy.
D. A fixed exchange rate policy is only appropriate for countries with little international reserves.
Answer: C
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When the government controls the price of a product, causing the market price to be above the free market equilibrium price,
A) all producers gain. B) both producers and consumers gain. C) only consumers gain. D) some, but not all, sellers can find buyers for their goods.
Which statement is most likely correct about quantity supplied?
a. When economists refer to quantity supplied, they are referring to a certain point on the supply curve or a certain quantity on the supply schedule. b. When economists refer to quantity supplied, they are referring to the relationship between a range of prices and the quantities supplied at those prices. c. Quantity supplied does not change with price. d. Quantity supplied will increase for one good when the quantity of the other good is increased.
Which of the following is an example of screening?
A. A car buyer asking the seller if the car is a lemon B. Selling pollution permits to polluters to induce the lowest-cost pollution reducers to cut back on pollution C. An employer requiring job applicants to provide references D. Reducing pollution to the point at which the marginal cost of the pollution equals the marginal benefit
When a U.S. company purchases $1 million worth of French cheese, the value of that transaction is recorded in the
A) current account. B) capital and financial account. C) transfer account. D) investment account. E) goods account.