If a country tries to maintain a managed floating exchange rate system, it must be
A. a communist nation to accomplish it.
B. willing to print and sell its own currency to strengthen it, if needed.
C. willing to print and sell its own currency to weaken it, if needed.
D. willing to sell gold and hard currency to weaken its currency, if needed.
Answer: C
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Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the right?
A) Both equilibrium rate of interest and quantity of credit will decrease. B) The equilibrium rate of interest will decrease and the quantity of credit will increase. C) Both equilibrium rate of interest and quantity of credit will increase. D) The equilibrium rate of interest will increase and the quantity of credit will decrease.
Which of the following would NOT be a cause for an increased American demand for the Mexican peso?
A) The United States having lower interest rates than Mexico B) Increased American demand for Mexican goods C) The expectation by speculators that the value of the peso is edging up D) More economic expansion in the United States E) None of the above.
An external cost is built into the market price of a good and thus paid by the consumers
a. true b. false
The figure above shows the U.S. supply of labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a
A) rightward shift of the supply of labor curve. B) movement downward along the supply of labor curve from a point such as A to a point such as B. C) leftward shift of the supply of labor curve. D) movement upward along the supply of labor curve from a point such as C to a point such as B. E) None of the above answers is correct because there is no change in the supply of labor curve.