A short-run depreciation of the British pound would be consistent with:
a. a temporary fall in the British money supply.
b. a temporary fall in the European money supply.
c. a temporary rise in the European money supply.
d. either a temporary fall in the British money supply
Ans: b. a temporary fall in the European money supply.
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Suppose the country of Dingo experienced an economic trough in January 2011. We can conclude that
A) real GDP in Dingo was increasing in January 2011. B) an expansion occurred after January 2011. C) Dingo did not experience a recession in 2010. D) Dingo's potential GDP fell in 2011.
Opponents of inflation targets believe that: a. such targets will encourage workers to shirk work
b. such targets will lead to unsustainable economic growth. c. such targets will lead the Fed to pay less attention to jobs and economic growth. d. such targets will cause international competitiveness to be lost and the value of savings to be reduced. e. such targets would prevent investors from investing in profitable ventures.
If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created, their demand curve would shift:
A. up and they would consume more. B. down and they would consume less. C. down and they would consume more. D. up and they would consume less.
The long-run response to an increase in the growth rate of the money supply is shown by shifting
a. the short-run and long-run Phillips curves left. b. the short-run and long-run Phillips curves right. c. only the short-run Phillips curve left. d. only the short-run Phillips curve right.