An exchange rate system under which currencies are allowed to fluctuate with frequent interventions by central banks is called a
A) freely floating system.
B) fixed system.
C) managed floating system.
D) None of the above.
C
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If the dollar falls in value compared to other currencies, what will happen in the United States?
A. A decrease in aggregate demand B. An increase in aggregate supply C. A decrease in aggregate supply D. A decrease in the U.S. price level
The question of "How are goods and services produced?" most closely addresses which of the following issues?
A) Why are Christmas trees popular only in December? B) Should contractors build residential housing or shopping malls? C) Is income distributed fairly in the United States? D) Should Ford build SUVs or luxury cars? E) Should Ford use expensive industrial robots or inexpensive Mexican autoworkers to produce SUVs?
Assume that an individual has to choose between two options: buying a mobile phone, or buying an iPod. The expected cost of buying a phone is $700 and the expected benefit is $900
The expected cost of buying an iPod is $300, and the expected benefit is $600. How does the individual arrive at the optimal choice if he implements: a) optimization in levels? b) optimization in differences?
From the airlines' perspective, amenities competition is preferable to price competition because revenues are not adversely affected and it is easier to determine the strategies of one's competitors
Indicate whether the statement is true or false