How would the impact on the exchange rate differ if the Fed were to sell U.S. Treasury securities instead of selling an equal amount (in $ terms) of euros?
What will be an ideal response?
It wouldn't. In either case the Fed would be selling an asset other than dollars and depleting the monetary base by pulling in dollars. As the monetary base is reduced the deposit expansion multiplier would cause the money supply to decrease and interest rates to increase. As domestic interest rates increase, the demand for U.S. assets increases causing the demand for dollars to increase and the supply of dollars to decrease, (also the supply of euros will increase).
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A perfectly competitive firm is producing 50 units of output, which it sells at the market price of $23 per unit. The firm's average total cost is $20. What is the firm's total revenue?
A) $23 B) $150 C) $1,000 D) $1,150 E) $20
In the United States in 2014, of those companies employing more than 200 workers that offer health care to those workers, ________ of employees accept the coverage
A) about 10 percent B) roughly 36 percent C) fewer than two-thirds D) almost 98 percent
The greater the MPC: a. the greater the fraction of an increase in AD due to an increase in government purchases that is consumption. b. the smaller the fraction of an increase in AD due to an increase in government purchases that is consumption. c. the greater the change in government purchases required to achieve a given change in AD
d. none of the above
Why is the tax cut multiplier different from the purchases multiplier?
What will be an ideal response?