An appreciation of the U.S. dollar
A) makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports.
B) makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports.
C) makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports.
D) makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports.
B
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An unsterilized intervention in which the central bank sells foreign assets to purchase domestic currency will result in
A) higher domestic interest rates. B) lower domestic interest rates. C) an increase in the money supply. D) lower domestic interest rates and an increase in the money supply.
What are the effects of a tariff, and who benefits and who loses when tariffs are imposed? What are the effects of a quota, and who benefits and who loses when quotas are imposed?
The intersection of the labor market supply and market demand curves establishes the minimum wage.
Answer the following statement true (T) or false (F)
Which of the following best explains how consumer spending can decrease even if disposable income remains the same?
a. Supply may decrease, raising the price of many goods.
b. The value of the consumers’ assets, such as stocks or property, might rise.
c. Inflation reduces the purchasing power of consumers’ disposable income.
d. Higher interest rates cause an increase in saving and decrease in spending.