In the 1930s, some nations such as the United States and Britain abandoned their gold pegs by adopting ________, whereas other nations such as Germany and South American nations adopted ________.
A) floating exchange rates and open capital markets; fixed exchange rates and capital controls
B) fixed exchange rates and open capital markets; floating exchange rates without capital controls
C) fixed exchange rates and closed capital markets; floating exchange rates and closed capital markets
D) floating exchange rates with closed capital markets; floating exchange rates and open capital markets
Ans: A) floating exchange rates and open capital markets; fixed exchange rates and capital controls
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According to the quantity theory of money, if the money supply grows at 20 percent and real GDP grows at 5 percent, then the inflation rate will be
A) 15 percent. B) 20 percent. C) 25 percent. D) 100 percent.
If in some range of production average cost is falling, the firm is experiencing
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output.