Which of the following is true? If a central bank runs out of reserve assets, then:
a. Actually, it is impossible for a nation to run out of reserve assets because the central bank could always print more money to increase it.
b. It cannot intervene in the foreign exchange market to raise the value of the nation's currency.
c. It must fix its exchange rate to a strong currency because the central bank can no longer allow the currency to fluctuate.
d. The central bank must borrow from its Treasury to increase the nation's reserve assets.
e. It cannot intervene in the foreign exchange market to lower the value of the nation's currency.
.B
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Changes in demand will often be met with changes in output rather than changes in prices because of formal and informal contracts
Indicate whether the statement is true or false
Which of the following best describes the short-run supply curve for an individual perfectly competitive firm?
A) It is the firm's marginal cost curve. B) It is the upward-sloping part of the firm's marginal cost curve. C) It is the vertical axis at prices less than minimum average variable cost and is the firm's marginal cost curve at prices above minimum average variable cost. D) It is the vertical axis at prices less than minimum average total cost and is the firm's marginal cost curve at prices above minimum average total cost.