If prices rise within a country, then, other things equal, the value of a unit of domestic currency will:
a. rise in both the domestic and the foreign exchange markets.
b. fall in both the domestic and the foreign exchange markets.
c. rise in the domestic market and fall in the foreign exchange market.
d. fall in the domestic market and rise in the foreign exchange market.
e. fluctuate unpredictably in both domestic and foreign exchange markets.
b
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Between 1950 and 2015, the number of acres devoted to wheat production in the United States ________ and the price of wheat ________
A) declined; more than doubled B) more than doubled; increased by about 50 percent C) declined; decreased D) increased; more than doubled
The first law of demand states that
a. the quantity demanded increases as price falls b. the quantity demanded decreases as price falls c. the quantity demanded increases as price increases d. none of the above
Bond holders:
A. lose when actual inflation equals expected inflation. B. do not lose when the expected inflation built into the nominal interest rate is lower than actual inflation. C. gain when actual inflation is more than was expected. D. do not lose when the expected inflation built into the nominal interest rate is correct.
Refer to the graph shown. The shift in the graph from D1 to D2 shows how an expansionary U.S. fiscal policy can cause an increase in:
A. interest rates that reduce the dollar's value. B. prices that raise the dollar's value. C. prices that reduce the dollar's value. D. interest rates that raise the dollar's value.