With the Bretton Woods system of international exchange rates
A) the value of a country's currency was determined strictly by the laws of supply and demand.
B) the value of a country's currency was determined by its stock of gold.
C) there were fixed exchange rates, and most countries were obligated to intervene to maintain the values of their currencies within 1 percent of par value.
D) a nation's balance of payments was eliminated.
Answer: C
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In 1981 Fed policy created a severe recession because the Fed
A) publicly announced an inflation increase program. B) undertook an unexpected increase in the inflation rate. C) undertook an unexpected reduction in the inflation rate. D) publicly announced an inflation reduction program. E) increased aggregate supply to reduce the inflation rate.
Refer to Scenario 9.1. The dominant strategy for Monty is to place ________ sheep on the commons
A) 4 B) 5 C) Monty's dominant strategy depends on how man sheep Sheb places on the commons. D) Monty has no dominant strategy.
When diminishing marginal utility sets in, total utility must be negative
Indicate whether the statement is true or false
Refer to the payoff matrix below. Which of the following is true for Bright Lights?
A) They do not have a dominant strategy.
B) Their pure strategy is to set a Low Price.
C) Their pure strategy is to set a High Price.
D) They do not have a pure strategy.