Use the following diagram to answer the next question.
Based on this diagram, we can say ________.
A. a contractionary policy is likely to be more effective than an expansionary policy
B. the Fed is pursuing a contractionary monetary policy
C. the Fed is pursuing an expansionary monetary policy
D. an expansionary policy is likely to be more effect than a contractionary policy
Answer: A
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An efficient allocation of goods in an exchange economy means that
A) goods were produced by the most efficient technology available. B) no one can be made better off without making somebody else worse off. C) those made worse off are not hurt as badly as the benefits resulting from those made better off. That is, there is a net positive gain. D) in a particular production process one gets the maximum output for a given input.
If the dollar-peso exchange rate is 0.01 dollars per peso, what is the rate of pesos per dollar?
a. 1 peso/dollar b. 10 pesos/dollar c. 0.1 peso/dollar d. 1,000 pesos/dollar e. 100 pesos/dollar