The real resource a government earns when it prints money and spends it on goods and services is called
A) seigniorage.
B) control of capital movements by limiting foreign exchange transactions.
C) pure profits.
D) inflation profits.
E) greenback.
A
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When the exchange rate falls, in the foreign exchange market the
A) quantity demanded of the currency increases. B) demand for the currency increases. C) quantity demanded of the currency decreases. D) demand for the currency decreases.
How many dollars do you need to buy a Swedish Kronor (SEK) when the exchange rate is $1 = 6.429 SEK?
a. $0.016 b. $1.056 c. $0.649 d. $0.156 e. $1.56
Real output per capita is calculated by
a. multiplying the population by GDP b. dividing nominal GDP by the population c. dividing the population by nominal GDP d. dividing real GDP by the population e. dividing the population by real GDP
Which of the following statements is TRUE about the long-run and short-run aggregate supply curve in the classical model?
A. The long-run aggregate supply curve is vertical, and the short-run curve is horizontal. B. The long-run and short-run curves start out horizontal and eventually become vertical. C. The long-run curve is vertical, and there is no short-run curve since all adjustments occur quickly. D. The long-run aggregate supply curve is not defined, and the short run curve is vertical.