In a flexible exchange rate system, which of the following would NOT cause the U.S. dollar to depreciate relative to the British pound?
A. a decrease in demand for British goods in the United States
B. a shift to the left in the supply of British goods to the United States
C. a decrease in British demand for U.S. exports
D. an increase in demand for British goods in the United States
Answer: A
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Refer to Figure 9.2. At price 0H and quantity Q1, the deadweight loss is
A) DGC. B) BDC. C) BGC. D) 0FGQ1. E) none of the above
Lowering the discount rate: a. encourages banks to borrow from the Fed, and they can more easily accommodate their customers' needs for loans. b. encourages business customers to borrow directly from the Fed
c. reduces the amount of reserves banks are required to keep. d. automatically reduces excess reserves. e. encourages banks to sell U.S. government securities and increase their cash reserves.
Which of the following firms is in an oligopoly?
A. Verizon (a cellular phone company) B. United Airlines (an airline company) C. Marlboro (a cigarette manufacturer) D. All of these are in an oilgopolistic market structure.
Which of the following is not correct?
A. Arturo and Dina could each consume 200 tacos and 200 burritos with trade. B. Total consumption of burritos could not be 600 either with or without trade. C. Neither Arturo nor Dina could each consume 200 tacos and 200 burritos without trade. D. Arturo and Dina could each consume 100 tacos and 100 burritos without trade.