In the two-country model of the Monetary Approach, the spot exchange rate is determined by
A) the relative quantities of money supplied and demanded.
B) the real money stock in country A vs. country B.
C) the nominal incomes in the two countries.
D) the ratio of prices in the economies.
A
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The goals of bank asset management include
A) maximizing risk. B) minimizing liquidity. C) lending at high interest rates regardless of risk. D) purchasing securities with high returns and low risk.
If producing just one more tube of toothpaste makes Crest's average total cost fall, the marginal cost of that tube of toothpaste is
a. less than one b. greater than the average total cost of the previous tubes c. greater than the average variable cost of the previous tubes d. less than the average total cost of the previous tubes e. less than the marginal cost of the previous tube