A central bank with a fixed exchange rate must, in response to an interest rate decline in the anchor-currency economy, ________
A) purchase the anchor currency
B) sell the anchor currency
C) convene a currency board
D) revalue its currency
A
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According to Keynesian theory, the most important determinant of saving and consumption is
A) the stock of durable goods in the consumer's possession. B) the stock of liquid assets. C) the level of real disposable income. D) the level of consumer indebtedness.
A system of deposit insurance
A) attracts risk-taking entrepreneurs into the banking industry. B) encourages bank managers to decrease risk. C) increases the incentives of depositors to monitor the riskiness of their bank's asset portfolio. D) increases the likelihood of bank runs.
Which of the following is a public good?
a. railroads b. genetic diversity c. a space station d. military aircraft e. commercial aircraft
Which of the following is true, according to the law of diminishing marginal utility?
A. The marginal utility of Diane's second Coke is greater than the marginal utility of her third pretzel, other things constant. B. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third pretzel, other things constant. C. The marginal utility of Diane's second Coke is greater than the marginal utility of her third Coke, other things constant. D. The total utility of two Cokes is greater than the total utility of three Cokes, other things constant.