If a country has a balance of payments deficit and wishes to maintain the fixed value of its currency, it will generally
A. sell its own currency for foreign currencies.
B. buy its own currency with foreign reserves.
C. decrease taxes to increase domestic disposable income.
D. increase the money supply to keep interest rates down.
Answer: B
Economics
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If a $10 billion increase in investment leads to a $20 billion increase in GDP, the multiplier is
A) 0.5 B) 2 C) 10 D) 30
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How would a $10 increase in an avoidable per-unit fixed cost effect a price-taking firm's supply curve?
A. MC would increase by $10, and AC would not change. B. AC would increase by $10, and MC would not change. C. MC and AC would both decrease by $10. D. MC and AC would both increase by $10.
Economics