Which of the following statements about the supply of dollars in the foreign exchange market is true?
A) It is equal to the money supply.
B) It represents the demand for U.S. goods and financial assets by firms and households outside the United States.
C) It represents the supply of U.S. goods and financial assets by firms and households within the United States.
D) It is determined by the willingness of households and firms that own dollars to exchange them for foreign currency.
D
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The liquidity approach to measuring the money supply uses
A) near moneys only. B) M1 only. C) M2 plus some highly liquid assets. D) M1 plus some highly liquid assets.
What is the present value of a payment of $100 one year from today if the interest rate is 5 percent?
a. $95.50 b. $95.24 c. $95.00 d. None of the above are correct to the nearest cent.
In the traditional Keynesian model, if the government increases government spending,
A. the C + I + G + X line will shift down and the aggregate demand curve will shift to the left. B. the C + I + G + X line will shift down but the aggregate demand curve will not shift. C. the C + I + G + X line will shift up but the aggregate demand curve will not shift. D. the C + I + G + X line will shift up and the aggregate demand curve will shift to the right.
Marginal benefit curves slope
A) upward because of increasing opportunity cost. B) upward, but not because of increasing opportunity cost. C) downward because of increasing opportunity cost. D) downward, but not because of increasing opportunity cost.