Suppose that Canada pegs its currency to the U.S. dollar at a rate of $C1 = $US1 and that Canada is a major exporter of crude oil to the United States. The increase in the price of oil that occurred in the second half of 2007 is likely to:
A) cause Canada to adopt a contractionary monetary policy and the United States to adopt an expansionary monetary policy.
B) cause Canada to adopt an expansionary monetary policy and the United States to adopt a contractionary monetary policy.
C) cause both Canada and the United States to adopt contractionary monetary policies.
D) cause both Canada and the United States to adopt expansionary monetary policies.
Answer: A) cause Canada to adopt a contractionary monetary policy and the United States to adopt an expansionary monetary policy.
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An upward-sloping supply curve suggests that producers
A) sell less at higher prices. B) sell more at lower prices. C) plan to sell more at a given, higher price. D) ignore marginal costs of production, and only focus on the demand for their product.
Last Tuesday you purchased 100 shares of Jitters Coffee Company, a corporation, for $25.00 per share. Unfortunately, the company went bankrupt later that same day
If the company still owed $1 million in debts after all assets have been liquidated and there are 1 million stockholders, what would be your personal loss from the remaining debt? A) $0 B) $1.00 C) $100.00 D) $1 million