Refer to Figure 26-5. In the figure above, the movement from point A to point B in the money market would be caused by
A) an open market sale of Treasury securities by the Federal Reserve.
B) an increase in the price level.
C) a decrease in real GDP.
D) an increase in the required reserve ratio by the Federal Reserve.
B
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Refer to Scenario 1-3. Had the firm not produced and sold the last 400 t-shirts, would its profit be higher or lower, and if so by how much?
A) Its profit would be $800 higher. B) Its profit would be $4,000 lower. C) Its profit would be $4,800 higher. D) Its profit would be $800 lower.
To determine the exchange rate necessary for the price of a good to be equal in two countries, ________
A) divide the higher price by the actual exchange rate B) use the actual exchange rate to convert the foreign price to its domestic-currency equivalent C) choose a good that is traded across borders D) divide the price in one currency by the price in the other currency