When Safeway supermarkets in the United States buys strawberries from Mexico
A) it uses dollars to pay Mexican farmers.
B) it uses pesos to pay Mexican farmers.
C) it may use any currency it chooses.
D) the transaction shows up in the U.S. capital account.
B
Economics
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Under the gold standard, a country experiencing a fall in its gold reserves was supposed to:
(a) Expand loans (b) Buy securities (c) Lower discount rates (d) Cut loans
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A monopoly will NOT be able to perfectly price discriminate if
A) obtaining information about each buyer's reservation price is too costly. B) demand is very elastic. C) demand is very inelastic. D) resale is impossible.
Economics