Special Drawing Rights
A) are granted by the Fed to banks which want to trade in the foreign exchange markets.
B) were eliminated when the Bretton Woods system broke down.
C) are created by the IMF in its role as lender of last resort.
D) were created by the Nixon administration on August 15, 1971.
C
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The purchase by the central bank of newly created government debt is called "monetizing the deficit."
Indicate whether the statement is true or false
When a firm in a price-taker industry is in long-run equilibrium, the market price equals
a. marginal cost but may be greater or less than average total cost. b. both average total cost and marginal cost. c. average total cost but may be greater or less than marginal cost. d. marginal revenue but may be greater or less than both average total cost and marginal cost.
Without trade, a country's consumption possibilities are
A. Greater than with trade. B. More than its terms of trade. C. Limited to its domestic production possibilities. D. Less than its trade balance.
The monetary rule is the view of the:
A. Keynesians that monetary policy is most important. B. Monetarists that monetary policy is most important. C. Classical economists that monetary policy is most important. D. Monetarists that the Fed should expand the money supply at a constant rate.