Contractionary monetary policy tends to:
A. reduce the interest rate, increase capital inflows, and lower the value of the dollar.
B. raise the interest rate, reduce capital inflows, and raise the value of the dollar.
C. reduce the interest rate, reduce capital inflows, and lower the value of the dollar.
D. raise the interest rate, raise capital inflows, and raise the value of the dollar.
Answer: D
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When the nominal exchange changes from 120 yen per dollar to 110 yen per dollar, the dollar has:
A. become undervalued. B. become overvalued. C. depreciated. D. appreciated.
As more time passes, the price elasticity of gasoline
A) increases. B) decreases. C) stays the same. D) becomes perfectly inelastic. E) becomes perfectly elastic.
The figure above shows the market for annual influenza immunizations the United States. Area B is the
A) gain in efficiency from the illustrated subsidy. B) remaining deadweight loss when there is the illustrated subsidy. C) deadweight loss when there is not the illustrated subsidy. D) equilibrium with the illustrated subsidy. E) loss in efficiency from the illustrated subsidy.
Suppose y = k1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, real GDP per worker is ________
A) $2 B) $4 C) $8 D) $16