When the Fed tightens U.S. monetary policy, domestic interest rates ________, making U.S. assets relatively more attractive to foreign investors, and ________ the equilibrium exchange rate.
A. fall; increasing
B. fall; decreasing
C. rise; increasing
D. rise; decreasing
Answer: C
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Ticket scalpers at the NCAA basketball tournament last year charged prices high above the printed ticket price. This observation is evidence of
A) a surplus at printed ticket prices. B) a shortage at printed ticket prices. C) the tournament not being televised. D) the tournament getting too much television exposure.
Only when budget deficits are financed by money creation does the increased government spending lead to ________ in the ________
A) a decrease; monetary base B) an increase; monetary base C) a decrease; money multiplier D) an increase; money multiplier
When the long-run aggregate supply curve shifts right, it represents:
A. economic growth. B. pushing our economy beyond normal capacity. C. an unemployment rate of zero. D. negative inflation.
Price elasticity of supply
a. is always a number between 0 and 1 b. is always a negative number c. is always greater than or equal to 0 d. is always greater than 1. e. can take on any value.