An increase in Swiss prices will cause:
A. an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
B. a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar.
C. an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar.
D. a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
Answer: D
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Everything else remaining unchanged, if the demand curve for reserves shifts to the right and borrowed reserves is zero:
A) there will be a decrease in both the federal funds rate and the quantity of reserves. B) there will be an increase in the federal funds rate but no change in the quantity of reserves. C) there will be an increase in both the federal funds rate and the quantity of reserves. D) there will be a decrease in the federal funds rate but no change in the quantity of reserves.
If the formation of Lindahl prices to support an efficient level of public goods is derived from individuals' reporting their marginal willingness to pay, people will under-report their true willingness to pay.
Answer the following statement true (T) or false (F)