If an economy has a fixed exchange rate and it chooses to issue $10 million in bonds, what will happen according to the Monetary approach?
A) It will have to increase its foreign exchange reserves.
B) It will have to decrease its foreign exchange reserves.
C) It will have to allow its currency to appreciate.
D) It will have to allow its currency to depreciate.
A
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If butter is a substitute for margarine, then an increase in the price of butter would be likely to cause
a. a rightward shift in the demand for margarine b. a leftward shift in the demand for margarine c. the quantity demanded of margarine to increase d. the quantity demanded of margarine to decrease e. a decrease in the price of margarine
All other factors held constant, if the price of game consoles rise, the demand for gaming titles will
a. shift to the left, because they are normally used together. b. remain constant. c. shift to the right, because they are normally used together. d. shift to the right, because they are substitutes.