The monetary approach basically looks at as the fundamental variable affecting exchange rates.
a. interest rates; short-run
b. interest rates; long-run
c. the price level; short-run
d. the price level; long-run
Ans: d. the price level; long-run
You might also like to view...
Suppose that investment is increasing. Most of the increase in real GDP that results is due to ________.
A. an increase in government purchases B. an increase in consumption C. additional increases in investment D. an increase in net exports
The slope of the consumption function is equal to the level of autonomous consumption
Indicate whether the statement is true or false
In a perfectly competitive market, all consumers:
A) are price takers. B) set prices to compete in their market. C) have exactly the same demand schedules. D) have exactly the same tastes and preferences.
Suppose Robert deposits $100 of cash into a checking account at a commercial bank. His actions will
A) decrease M1 by $10,000. B) increase M1 by $10,000. C) produce no change in M1, but M1 will decrease in the future because the bank has excess reserves. D) produce no change in M1, but M1 will increase because the bank has excess reserves.