Which of the following statements is true?
A. Expansionary monetary policy tends to lower the exchange rate of an economy. The effects of expansionary fiscal policy are unclear.
B. Expansionary fiscal and monetary policy both tend to increase the exchange rate of an economy.
C. The effects of both expansionary fiscal and monetary policy on the exchange rate of an economy are unclear.
D. Expansionary fiscal policy tends to increase the exchange rate of an economy. The effects of expansionary monetary policy are unclear.
Answer: A
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Julie works part-time for economic reasons. She would be considered
A) an involuntary part-time worker. B) a discouraged worker. C) a job seeker. D) not in the labor force. E) unemployed as calculated by the Bureau of Labor statistics.
To move up the income ladder and achieve high-income status, countries must
a. have sustained economic growth. b. restrict international trade. c. encourage the production of consumption goods rather than investment goods. d. maintain high inflation.
A perfectly elastic demand curve has an elasticity coefficient of:
a. 0. b. infinity. c. 1. d. less than 1.
When the price level in the United States falls relative to the price level of other countries, ________ will fall, ________ will rise, and ________ will rise
A) imports; exports; net exports B) exports; imports; net exports C) net exports; exports; imports D) net exports; imports; exports