An increase in the price level in Japan relative to the price level in the United States will shift the demand curve for dollars leftward and the dollar depreciates or becomes weaker
a. True
b. False
Indicate whether the statement is true or false
False
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Two ways to postpone diminishing returns are:
a. Increase labor and improve education. b. Increase all resources together and make the production process more efficient. c. Actually, there is no way to postpone diminishing returns. d. Keep the government budget balanced and increase the money supply at a rate that keeps inflation low (e.g., at 2% or whatever the national goal happens to be). e. Increase the quantity of capital.
The statement "By the time our grandchildren are born, scarcity will not be a problem" is
A. possible only if technology advances at a great pace. B. true, because we will learn to limit our wants in the future. C. true, because by that time everyone's basic needs will be met. D. false, because people always want more than there is available.
Refer to the information provided in Table 36.3 below to answer the question(s) that follow. Table 36.3 PointAggregate Income (Y)Aggregate Consumption (C) A 15 19 B 30 23 C 45 27 D 60 31 E 75 35 F 90 39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 36.3. The error for point D is equal to
A. -2. B. -1. C. +1. D. +2.
An inverted yield curve is a valuable forecasting tool because:
A. investors are expecting higher short-term rates in the future, and this usually signals an economic slowdown. B. inverted yield curves signal better economic times are expected. C. the yield curve usually is inverted so it reflects a growing economy. D. the yield curve seldom is inverted and can signal an economic slowdown.