If the interest rate in the United States rises
A) investors increase their demand for dollars and the U.S. exchange rate appreciates.
B) investors increase their demand for dollars and the U.S. exchange rate depreciates.
C) investors decrease their demand for dollars and the U.S. exchange rate appreciates.
D) investors decrease their demand for dollars and the U.S. exchange rate depreciates.
A
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Which of the following statements best describes the US economy between 1921 and 1928?
a. Most of the major sectors were growing very rapidly b. Hyperinflation led to large decreases in the standard of living c. Real average wage growth was stagnant d. Unemployment fluctuated dramatically
When the government closes an expansionary gap with a change in government spending, the _____ in government spending leads to _____
a. decrease; a decrease in both real GDP and the price level b. decrease; a decrease in real GDP and an increase in the price level c. decrease; an increase in both real GDP and the price level d. decrease; an increase in real GDP and a decrease in the price level e. increase; a decrease in both real GDP and the price level
Foreign investment in the U.S. causes the
a. balance on current account to become positive b. sum of the capital and current accounts to be positive c. balance of trade to become negative d. quantity of imported services to increase e. value of the dollar to increase
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and real GDP falls. b. The quantity of real loanable funds per time period falls, and real GDP rises. c. The quantity of real loanable funds per time period rises, and real GDP remains the same. d. The quantity of real loanable funds per time period and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.