When the Fed pursues a monetary policy of low interest rates, the exchange rate between the dollar and other currencies will tend to ________, generally making it ________ for foreign firms to sell their goods in the United States
A) rise; easier
B) rise; more difficult
C) fall; easier
D) fall; more difficult
D
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Economists assume that the goal of the firm is to
a. maximize total revenue b. maximize profits c. minimize costs d. equate total revenue and total cost e. break even in the long run
What does the law of comparative advantage indicate?
What will be an ideal response?
A decrease in the price of oil will cause the:
A. short-run aggregate supply curve to shift to the right. B. short-run aggregate supply curve to shift to the left. C. aggregate demand curve to shift to the right. D. long-run aggregate supply curve to shift to the left.
(Exhibit: IS-LM Fiscal Policy) Based on the graph, starting from equilibrium at interest rate r1 and income Y1, an increase in government spending would generate the new equilibrium combination of interest rate and income:
What will be an ideal response?