Why might the Federal Reserve intervene in foreign currency markets?
A) to ensure the safety of overseas investments for private investors
B) to maintain a desired exchange rate for the dollar
C) to ensure the safety of overseas investments for pension funds
D) to ensure the safety of overseas investments for banks
B
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The above table has the demand for money schedule
a) If the Fed supplies $1.1 trillion dollars, what is the equilibrium interest rate? b) Discuss how equilibrium is restored if the interest rate is greater than the equilibrium rate found in part (a).
Which of the following is not correct?
a. Critics argue that minimum-wage laws hurt the very people they are intended to help. b. Minimum-wage laws may increase unemployment among the groups of workers affected by the minimum wage. c. If the demand for unskilled labor is relatively inelastic, the higher wage will produce more unemployment than if the demand for unskilled labor is relatively elastic. d. Minimum-wage laws may benefit teenagers from middle-class families, so the policy is not a precise way to help the poor.