Other things equal, a reduction in American income should:
A. decrease the U.S. current account and lower the dollar.
B. decrease the U.S. current account but raise the dollar.
C. increase the U.S. current account but lower the dollar.
D. increase the U.S. current account and raise the dollar.
Answer: D
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List and describe five of the eight major functions or responsibilities of the Fed
Consumer surplus is given by the area:
a. above the supply curve but below the price b. below the supply curve c. below the demand curve but above the price d. below the demand curve e. none of the above
For each of the following pairs of products, state which are complements, which are substitutes, and which are unrelated
a. House plants and potato chips b. Eyeglasses and contact lenses c. Motorcycles and gasoline d. Smartphones and smartphone apps e. Red wine and white wine
Real rates of return are
A. not taxed. B. not adjusted for inflation. C. adjusted for inflation. D. used in individual financing and not corporate financing.