If the U.S. government enters the foreign exchange market and purchases dollars to attain a specific exchange rate with the yen, the dollar will ________ and the yen will ________.
A. depreciate; depreciate
B. depreciate; appreciate
C. appreciate; depreciate
D. appreciate; appreciate
Answer: C
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A surplus is defined as
A) the excess of total expenditures over total revenues. B) government spending plus transfer payments. C) the sum of all past borrowing by the government. D) the excess of total revenues over total expenditures.
If a Cournot duopolist announced that it will double its output
A) it becomes the leader. B) the other firm does not view the announcement as credible. C) the other firm will shut down. D) the other firm will double output also.
Oil import restrictions were probably unwise, as they raised the price of domestic oil in the United States and reduced the long-term domestic supply of oil
Indicate whether the statement is true or false
New York City limits the number of taxi cabs that can legally operate in the city. The most likely result of this practice is that
a. cab fares will be lower. b. cab fares will be higher. c. the cost of operating a taxicab will be lower. d. subway fares will decrease.