If real interest rates rise in the United Kingdom relative to the United States, this event will most likely cause the British pound to ________ and the U.S. dollar to ________.
A. depreciate; depreciate
B. appreciate; depreciate
C. appreciate; appreciate
D. depreciate; appreciate
Answer: B
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The Federal Open Market Committee consists of
A) 12 members, each of which is the president of one of the 12 regional Federal Reserve banks. B) the seven members of the Board of Governors , the Chairman of the Fed, the U.S. Treasury Secretary, and the president of the Federal Reserve Bank of New York. C) the chairman of the Fed, the chairman of the president's council of economic advisors, the U.S. Treasury Secretary, and 4 of the 12 Federal Reserve Bank presidents who serve on a rotating basis. D) the seven members of the Board of Governors , the president of the Federal Reserve Bank of New York, and 4 other Federal Reserve Bank presidents.
In determining comparative advantage, cost is measured in terms of
a. foreign currency b. domestic currency c. gold only d. units of weight and measure e. opportunities forgone
According to the per se rule, activities that were potentially monopolizing tactics were illegal
a. True b. False Indicate whether the statement is true or false
If all the countries used one common currency, we could expect that exports and imports would
a. decrease because international trade would be less needed b. decrease because each country would be producing more output c. increase because exchange rate uncertainty would be eliminated d. increase because many small countries would benefit most e. not change because trading of goods is independent of currency