Following an expansion of the money supply, a government committed to<br/>maintaining a fixed exchange rate must ____. A: accept a surplus in its current account. B: not use sterilized intervention. C: increase its level of government expenditure and autonomous<br/>investments. D: intervene in the foreign exchange market to sell foreign currency and<br/>buy domestic currency.

Ψ in the<br/>Schrödinger equation is ( ) A: wave<br/>function B: probability<br/>density C: radial<br/>wave function D: angular<br/>wave function

Trade between countries ( ) A: allows<br/>each country to consume at a point outside its production<br/>possibilities frontier. B: limits<br/>a country’s ability to produce goods and services on its own. C: must<br/>benefit both countries equally; otherwise, trade is not mutually<br/>beneficial. D: can<br/>best be understood by examining the countries’ absolute<br/>advantages.

Prices<br/>direct economic activity in a market economy by() A: influencing the actions of buyers and<br/>sellers. B: reducing scarcity of the goods and services<br/>produced. C: eliminating the need for government<br/>intervention. D: allocating goods and services in the most<br/>equitable way.

Which of the following statements is not correct? A: Medical research can be an example of a<br/>public good. B: The private market will tend to undersupply<br/>public goods. C: The free-rider problem occurs when a good is<br/>nonexcludable. D: All goods provided by the government are<br/>public goods.