If the United States follows an expansionary monetary policy relative to Japan and Germany, which of the following is not likely to occur?
A) U.S. interest rates will rise relative to Japan and Germany
B) a larger U.S. capital account deficit
C) a depreciation of the dollar
D) lower level of U.S. income
D
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Creating conditions for fair trade by limiting imports will make the domestic consumers better off as they will be required to pay low prices for the products
a. True b. False Indicate whether the statement is true or false
Government decreasing taxes is an example of:
A. expansionary fiscal policy. B. contractionary fiscal policy. C. expansionary monetary policy. D. contractionary monetary policy.
Keynesian economists believe that
a. the velocity of money is stable b. changes in the money supply do not affect output c. there is a one-to-one correspondence between M and P in the equation of exchange d. the velocity of money is predictable e. the velocity of money is affected by changes in expectations
The demand curve for money curve shows, all other things unchanged, the
A) quantity of money demanded at each price. B) quantity of money demanded at each bond rate. C) quantity of money demanded at each interest rate. D) amount of money people demand at a specific interest rate.