Holding other things constant, if the US dollar depreciates, it makes the US exports
a. Less attractive to foreigners
b. More attractive to foreigners
c. Neither more nor less attractive to foreigners
d. None of the above
b
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How many of the following business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real
wages? A) one B) two C) three D) four
Which of the following financial market developments has helped to remove financial constraints faced by people?
a. Online stock trading b. Bank credit cards c. Derivatives trading d. ATM/Debit cards
The most-favored-nation policy implies that the United States will
a. extend concessions made in bilateral trade agreements to all other nations. b. give preference to North American nations in all trade matters. c. work to lower trade barriers with Canada. d. extend tariff and quota concessions only to major trading partners.
Suppose the unemployment rate in 2001 was 4.7, lower than the 5.4 percent unemployment rate that policymakers think is consistent with price level stability. Accepting the dictates of the Phillips curve, they would probably forecast for 2002
a. a higher rate of inflation b. a lower rate of inflation c. a higher rate of GDP growth d. a recession e. an economic stabilization at 4.7 percent unemployment