If the U.S. interest? rate, adjusted for? people's expectation of? inflation, increases sharply relative to the rest of the? world, then
A) there will be a decrease in the demand for dollars in foreign exchange markets.
B) there will be no change in the demand for dollars in foreign exchange markets but there will be an increase in demand for foreign currency.
C) the dollar will appreciate.
D) the dollar will depreciate.
Answer: C) the dollar will appreciate.
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A key factor in producing high economic growth is
A) eliminating foreign trade. B) well-functioning financial markets. C) high interest rates. D) stock market volatility.
The central bank in the United States is known as the Federal Reserve System.
Answer the following statement true (T) or false (F)
Policies to create jobs in the nation are the concern of:
a. macroeconomics. b. microeconomics. c. both microeconomics and macroeconomics. d. neither microeconomics nor macroeconomics.
Refer to Exhibit 6-2. The labor force participation rate in year 3 is
a. 12 1/2 percent. b. 70 percent. c. 80 percent. d. 30 percent. e. 50 percent.