If the dollar depreciates against the euro it means that French-made goods become more expensive in the United States.
Answer the following statement true (T) or false (F)
True
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In a study published in 1963, Milton Friedman and Anna Schwartz found that in every business cycle they studied over nearly a hundred-year period
A) the growth rate of the money supply decreased before output decreased. B) interest rates decreased before output decreased. C) the growth rate of federal government spending decreased before output decreased. D) the growth rate of state and local government spending decreased before output decreased.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more negative (or less positive). b. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). c. The real risk-free interest rate and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Table 21-1 ? Share of Income Group National Income Lowest fifth 6 Second fifth 9 Third fifth 17 Fourth fifth 19 Highest fifth 49 ? Consider the economy described by the income distribution in Table 21-1. From this table, we can conclude that the
A. poorest quarter of the population earns 15 percent of the income. B. “middle” fifth of the population earns 32 percent of the income. C. poorest quarter of the population earns 19 percent of the income. D. richest fifth of the population earns 49 percent of the income.
What policy shifts the aggregate demand curve the farthest leftward?
What will be an ideal response?