Refer to the table. Suppose that the United States imports more products from Luteland than before. All else equal, the dollar price of luta will:
Answer the question on the basis of the following table, which indicates the dollar price of luta, the currency used in the hypothetical economy of Luteland:
A. rise and the dollar will depreciate.
B. fall and the dollar will depreciate.
C. rise and the dollar will appreciate.
D. fall and the dollar will appreciate.
A. rise and the dollar will depreciate.
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Which of the following would create a natural monopoly?
A) ownership of all the available units of a necessary input B) an exclusive right granted to supply a good or service C) requirement of a government license before the firm can sell the good or service D) technology enabling a single firm to produce at a lower average total cost than two or more firms E) a patent granted the producer of the good or service
The Federal Reserve System regulates the money supply primarily by:
A. controlling the production of coins at the U.S. mint. B. altering the reserve requirements of commercial banks and thereby the ability of banks to make loans. C. altering the reserves of commercial banks, largely through sales and purchases of government bonds. D. restricting the issuance of Federal Reserve Notes because paper money is the largest portion of the money supply.