South Korea suffered a destabilizing speculation in the late 1990s. This had the effect of ________ for the won. South Korean government tried to counteract this by raising interest rates which should have ________ the won.
A) decreasing demand; increased demand for
B) decreasing the supply; increased supply of
C) increasing demand; decreased demand for
D) decreasing the supply; increased demand for
Ans: A) decreasing demand; increased demand for
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If one U.S. dollar could be exchanged for one Canadian dollar in 1970, and one U.S. dollar can now be exchanged for 1.13 Canadian dollars, which of the following is true?
A) The U.S. dollar lost value against the Canadian dollar. B) The Canadian dollar lost value against the U.S. dollar. C) The Canadian dollar gained value against the U.S. dollar. D) Both A and C are true.
Average revenue (AR) is equal to
a. total revenue/output. b. total revenue minus total cost. c. price per unit. d. both total revenue/output and price per unit.
Bankers' business decisions effect the money supply because bankers
a. are respected men and women. b. have the ability to create money. c. use a special accounting system developed by the Federal Reserve Board. d. All of the above are correct.
During 2001-2004, the Fed injected additional reserves into the banking system, which reduced the federal funds rate and other short-term interest rates. Other things constant, what is the most likely short-run impact of this policy?
a. an increase in the rate of unemployment b. a reduction in the growth of employment c. an increase in aggregate demand and real GDP d. a reduction in the long-run rate of inflation