________ was the main cause of weakening of the U.S. dollar between August 2007 and July 2008
A) Easing of monetary policy in the U.S.
B) An increase in the expected value of the dollar
C) Rising energy prices
D) A surge in exports from China to the U.S.
A
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Which of the following is a main factor that explains the differences in the incomes of U.S. households?
A. inheritances B. luck and misfortune C. discrimination D. All of these
Look at the above figure. Suppose the economy was initially in equilibrium at point A. What point would represent the short-run equilibrium if the Fed makes an open market purchase of bonds?
A. A B. B C. C D. D
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost of one pair of shoes for the United States is ________, while the opportunity cost of one pair of shoes for Canada is ________.
A. 5 apples; 2 apples B. 2,000 apples; 200 apples C. 1/5 apple; ½ apple D. 100 apples; 20 apples
The nominal interest rate is 7% and the real interest rate is 2.75%. What is the inflation rate?
A) 3.75% B) 4.55% C) 4.25% D) 9.75%