Other things the same, an increase in the U.S. interest rate causes
a. demand in the market for foreign-currency exchange to increase so the exchange rate increases.
b. demand in the market for foreign-currency exchange to decrease so the exchange rate decreases.
c. supply in the market for foreign-currency exchange to increase so the exchange rate decreases.
d. supply in the market for foreign-currency exchange to decrease so the exchange rate increases.
d
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Which of the following is true of a country with a managed exchange rate system?
A) The central bank of the country always pursues contractionary monetary policy. B) The current account balance of the country is always positive. C) The current account balance of the country is always negative. D) The central bank of the country actively intervenes to influence the exchange rate.
The "new classical" economics took advantage of the disarray and partial eclipse of Keynesian economics to reestablish macro model-building based on the assumption of price ________ and market ________
A) flexibility, clearing B) flexibility, non-clearing C) stickiness, clearing D) stickiness, non-clearing
The Census survey collects data on regular wages, tips, commissions, and bonuses
Indicate whether the statement is true or false
Classical economists believed that the economy automatically moves toward equilibrium at full employment
a. True b. False Indicate whether the statement is true or false