When the value of a currency decreases relative to other currencies, we say that a currency experiences:
A. exchange-rate appreciation.
B. exchange-rate depreciation.
C. interest-rate appreciation.
D. interest-rate depreciation.
B. exchange-rate depreciation.
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Given the level of real GDP, the equilibrium level of the interest rate depends on the
A) demand for money. B) monetary-fiscal policy mix. C) size of the multiplier. D) extent of crowding out.
The birth rate in most LDCs is
A. lower than that of most industrial countries. B. the same as most industrial countries. C. much higher than that of most industrial countries.
Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays 6 percent annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much will be in the account when you retire?
A. $3,752 B. $46,794 C. $24,871 D. $12,985
If the real value of your savings is decreasing over time, we know that the:
A. real rate of interest is positive. B. real rate of interest is negative. C. real rate of interest is zero. D. inflation is zero.