A decrease in aggregate demand could be caused by
A. A decrease in the value of the domestic currency.
B. A booming economy.
C. Expansionary monetary policy.
D. Contractionary monetary policy.
Answer: D
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The future date on which the currencies are actually exchanged is called what?
A) the value date B) the spot exchange date C) the two-day window D) the commitment date E) the forward exchange rate
Suppose a seller's opportunity cost matches a buyer's valuation of the product. Assuming a two-person economy, which of the following statements will be true?
a. The transaction will benefit the buyer, while the seller will neither gain nor lose from it. b. The economic value created by this exchange will be zero. c. Both parties will be worse-off after the transaction. d. The seller will be worse-off than the buyer after the transaction.
An increase in the MPC
a. increases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand. b. increases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand. c. decreases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand. d. decreases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand.
FOMC stands for:
A. Federal Open Market Committee. B. Federation of Open Monies Committee. C. Fixed Open Market Commitments. D. Federal Open Money Committee.