An increase in the real exchange rate will tend to ________ exports and to ________ imports.
A. increase; increase
B. decrease; increase
C. increase; decrease
D. decrease; decrease
Answer: B
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In the last twenty-five years, the Yen and German mark and now the Euro have
a. fluctuated widely against the dollar b. appreciated against the dollar and then depreciated against the dollar c. exchanged without restrictions d. all of the above e. none of the above
Historically, consumption spending in the United States has _____
a. fluctuated greatly with changes in the level of income b. remained approximately constant as a percentage of income c. decreased as a percentage of income d. varied inversely with the inflation rate e. varied inversely with the interest rate
Assume that the Paris First National Bank's loan position contracted from $16 million to $12 million. If the required reserve ratio was increased from 20 percent to 40 percent, how much would the money supply shrink?
a. $5 million. b. $10 million. c. $15 million. d. $20 million. e. $24 million.
An optimal allocation of resources is one which is
A. unfair. B. fair. C. efficient. D. inefficient.