An increase in income in the United States would have what effect on the equilibrium exchange rate and equilibrium quantity of Canadian dollars in the foreign exchange market?
a. decrease in the exchange rate and decrease in the quantity
b. decrease in the exchange rate and no effect on the quantity
c. increase in the exchange rate and decrease in the quantity
d. no change in the exchange rate and increase in the quantity
e. increase in the exchange rate and increase in the quantity
E
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In the figure above, households
A) receive transfers directly from governments. B) buy goods and services from governments in goods markets. C) receive transfers from governments through factor markets. D) sell factors of production to governments. E) pay taxes to governments through factor markets.
Monetarists tend to think that the aggregate demand curve is
A) stable. B) vertical. C) horizontal. D) sensitive to changes in investment spending.
Which of the following statements is (are) correct? Regardless of whether the LM curve is vertical or upward sloping,
a. a money stock target is superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule. b. an interest rate target is always superior to a money stock target when the uncertainty facing the policymaker concerns the IS schedule. c. both a money stock target or interest rate target provide the same results when the uncertainty facing the policymaker concerns the IS schedule. d. a money stock target is never superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule.
An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the:
A. supply curve for cigarettes rightward. B. demand curve for cigarettes rightward. C. supply curve for cigarettes leftward. D. demand curve for cigarettes leftward.