An increase in the price of the U.S. dollar in terms of euros will cause, ceteris paribus,
A. European goods to be cheaper to residents of the United States.
B. Higher interest rates in the United States.
C. European goods to be more expensive to residents of the United States.
D. A lower European inflation rate.
Answer: A
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Which of the following will reduce consumer expenditures?
A) a decrease in expected future income B) a decrease in interest rates C) a decrease in the price level D) a general increase in housing prices
The marginal propensity to consume is assumed to be
A) greater than 1. B) less than 1. C) greater than 2. D) less than 0.5.
A feedback from low real wages to low productivity could be caused by
A) an increase in the labor force caused by more immigration. B) a reduction in the power of labor unions. C) a reduction in the real minimum wage. D) increased worker anxiety about job security. E) all of the above.
Discuss why the World Bank has been criticized for making loans to nations that can attract private funds
What will be an ideal response?