Under a gold standard,
a. with a balance of payments deficit, interest rates would fall and attract foreign capital.
b. a deficit in the balance of payments increased a nation's money supply automatically.
c. all currencies were defined in terms of gold.
d. when a nation had a deficit in its balance of payments, more gold was flowing in than was flowing out.
e. All of the above are correct.
c
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If the market wage for fast-food restaurants is $11 and the government enforces a minimum wage of $7, the unemployment rate will
A. Increase as quantity of labor supply decreases and quantity of labor demand increases. B. Increase as quantity of labor supply increases and quantity of labor demand increases. C. Not be affected by the minimum wage. D. Increase as quantity of labor supply increases and quantity of labor demand decreases.
Suppose that in a time of crisis everyone pitches in and works more than full-time. How is this represented by a production possibilities frontier?
What will be an ideal response?
If the U.S. purchases oil from Venezuela, what is the effect in the foreign-exchange market?
A. It will increase demand for U.S. dollars. B. It will decrease demand for U.S. dollars. C. It will increase supply of U.S. dollars. D. It will decrease supply of U.S. dollars.
General equilibrium analysis is the study of
A) how an equilibrium is determined in all markets simultaneously. B) how an equilibrium is determined in all closely related markets. C) the effects of a change in a market, and all spillover effects in all related markets. D) Any of the above.