The biggest disadvantage of a fixed exchange rate is the
A) increased probability of high inflation.
B) tradeoff between supporting the exchange rate and adjusting the trade balance.
C) tradeoff between supporting the exchange rate and maintaining economic growth.
D) increased probability of a trade deficit.
E) tradeoff between supporting the exchange rate and maintaining a balanced budget.
C
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In the 19th century John Deere took out a patent on a newly designed plow that incorporated steel to make plowing faster. Many farmers bought plows from his company and he made millions. This example shows that patents turn an idea into a
a. public good. b. societal good. c. private good. d. normal good.
The velocity of money is:
A. the number of transactions a typical dollar is used in during a given period. B. the number of goods a typical dollar can buy in a given period. C. how quickly money is created through the financial system. D. how quickly money will be accepted as a medium of exchange in a given period.