If a country chooses to have a monetary policy oriented toward domestic goals and a fixed exchange rate, then
A) it can have the freedom of international capital movements.
B) it cannot have the freedom of international capital movements.
C) it cannot balance its current account.
D) it cannot have fiscal policy oriented toward domestic goals.
E) it cannot control money supply growth.
B
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When two firms collude to maximize profit the total quantity produced by both firms taken together is determined at the quantity where ________
A) excess capacity is minimized B) industry marginal cost equals industry marginal revenue C) the price equals the industry's marginal cost D) excess capacity is as large as possible zero
An increase in a country's money supply causes
A) its currency to appreciate in the foreign exchange market while a reduction in the money supply causes its currency to depreciate. B) its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to appreciate. C) no effect on the values of it currency in international markets. D) its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to further depreciate. E) its currency to depreciate in the domestic market and appreciate in the foreign market.