The financing of U.S. export transactions, ceteris paribus
A) reduces U.S. interest rates.
B) reduces the amount of foreign currency held by the Fed.
C) reduces U.S. GDP.
D) increases the amount of foreign currency held by U.S. banks.
Answer: D
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The problems with using the consumer price index as a measure of the cost of living are important because
a. even the appearance of high rates of inflation cause voters to become disenchanted. b. politicians have manipulated the measurement problems to their advantage. c. many government programs use the CPI to adjust for changes in the overall level of prices. d. if the price level is overstated, consumers will be taken advantage of by sellers of consumer goods.
If marginal profit is negative when the firm produces one more unit, then the firm is currently maximizing profits.
Answer the following statement true (T) or false (F)