________ in the foreign interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to appreciate, everything else held constant
A) An increase; right
B) An increase; left
C) A decrease; right
D) A decrease; left
C
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Congress passed the Freedom to Farm Act in 1996. What was the purpose of this Act?
A) to phase out price floors and return to a free market in agriculture B) to grant free land to farmers in order to produce crops that were particularly scarce C) to phase out the use of price ceilings in agricultural markets D) to encourage more people to become farmers
According to economist Schumpeter, the first step in entrepreneurial growth is:
a. little competition b. monopoly power c. zero economic profits d. creative destruction
When Keynesian equilibrium is present,
a. aggregate demand for goods and services will equal the current rate of output. b. business inventories will be increasing. c. full employment must be present. d. the actual rate of unemployment must equal the natural rate of unemployment.
By buying bonds, the Fed decreases the quantity of reserves in the banking system and decreases the money supply.
a. true b. false