Holding everything else constant, a country's imports will decrease if the:
A) country's currency appreciates.
B) country's currency depreciates.
C) country's currency is revalued.
D) none of the above.
B
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When the Fed is targeting the money supply, it has complete control over the interest rate
a. True b. False Indicate whether the statement is true or false
According to rational expectations theory, predictable expansionary monetary and fiscal policies to reduce the unemployment rate are:
a. desirable because the result is to lower inflation. b. harmful because the only result is higher inflation. c. ineffective on the price level. d. None of these.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
A firm has an incentive to decrease supply now and increase supply in the future if it expects that
A) more firms will enter the market in the future. B) the prices of inputs used to produce the product will rise in the future. C) the price of its product will be lower in the future than it is today. D) the price of its product will be higher in the future than it is today.