A country would tend to experience currency depreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world.
b. people in the foreign currency markets expect the value of the currency to rise in the near future.
c. the foreign demand for its exports decreases

In the simple deposit expansion model, a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed

A) sold $200 in government bonds. B) sold $500 in government bonds. C) purchased $200 in government bonds. D) purchased $500 in government bonds.

In the game in Scenario 13.14, each firm has a strategy that would not be chosen under any circumstances. This strategy is

A) Q = 50. B) Q = 100. C) Q = 150. D) "choose the same Q as the other player." E) "choose a Q different from the other player's."