Under a currency board regime, if domestic citizens are buying more (imports) from foreigners than they are selling to them (exports),
a. the amount of the domestic currency exchanged for the foreign currency will decrease and, thus, increase the domestic money supply.
b. the amount of the domestic currency exchanged for the foreign currency will decrease and, thus, decrease the domestic money supply.
c. the amount of the domestic currency exchanged for the foreign currency will increase and, thus, increase the domestic money supply.
d. the amount of the domestic currency exchanged for the foreign currency will increase and, thus, decrease the domestic money supply.
D
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When Frank's income rises from $29,000 to $34,000 per year, he increases his purchases of tomatoes from 20 pounds to 28 pounds per year. What is Frank's income elasticity of demand for tomatoes? (Use the midpoint formula
) According to Frank, are tomatoes an inferior or normal good?
The ABC Company manufactures routers that are used to provide high-speed Internet service. ABC sells an average of 1,000 routers each month, but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month
Therefore A) ABC will soon go out of business. B) to reach minimum efficient scale ABC would have to sell at least 3,000 routers each month. C) ABC is experiencing diminishing returns. D) ABC is experiencing diseconomies of scale.
If actual inflation is greater than the expected rate of inflation, then probably
A. the borrowers are made better off than lenders. B. the borrowers are made worse off than lenders. C. creditors gain at the expense of borrowers. D. savings accounts have increased in real terms.
Any place where factors of production are bought and sold is a:
A. Private-goods market. B. Stock market. C. Product market. D. Factor market.