If the dollar-yen exchange rate changes from $1 = 125 yen to $1 = 100 yen, then
a. exports to Japan will likely decrease.
b. Japanese tourists will be more likely to visit the United States.
c. U.S. businesses will be more likely to use Japanese shipping lines to transport their products.
d. U.S. consumers will be more likely to buy Japanese-made automobiles.
B
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Which of the following increases the quantity of money demanded?
A) a fall in the nominal interest rate B) a rise in the nominal interest rate C) a rise in the inflation rate D) a rise in the real interest rate E) an increase in real GDP
Suppose the government's budget deficit increases by $500 billion. If there is no Ricardo-Barro effect, what occurs?
A) The supply of loanable funds curve shifts leftward, the real interest rate rises, and the quantity of loanable funds decreases. B) The supply of loanable funds curve shifts rightward, the real interest rate falls, and the quantity of loanable funds increases. C) The demand for loanable funds curve shifts rightward, the real interest rate rises, and the quantity of loanable funds increases. D) The demand for loanable funds curve shifts leftward, the real interest rate falls, and the quantity of loanable funds decreases. E) The supply of loanable funds curve shifts leftward, the real interest rate rises, and the quantity of loanable funds increases.
How can diversification reduce idiosyncratic risk but not systematic risk?
What will be an ideal response?
If we consider the savings, investment, and net exports in the United States in recent years, the gap between savings and investment is almost exactly:
A. the government deficit. B. the balance of payments. C. direct foreign investment. D. the trade balance.