Other things equal, the domestic currency ________ when the domestic money supply increases relative to the foreign money supply.
A. remains unchanged in the long run.
B. depreciates in the long run
C. appreciates in the long run
D. appreciates in the short run but returns to its initial value in the long run.
Answer: B
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What happens to your purchasing power if inflation is less than you anticipated?
A) It decreases. B) It won't change much. C) It increases. D) It devalues your net worth.
The total amount of consumer surplus and producer surplus is at its maximum when
A) consumers and producers are allowed to trade at the market clearing price. B) the government imposes a price floor that is higher than the market clearing price. C) the government imposes a price ceiling that is lower than the market clearing price. D) free market exchanges do not exist.
Economists blame the long lines at gasoline stations in the U.S. in the 1970s on
a. U.S. government regulations pertaining to the price of gasoline. b. the Organization of Petroleum Exporting Countries (OPEC). c. major oil companies operating in the U.S. d. consumers who bought gasoline frequently, even when their cars' gasoline tanks were nearly full.
Both tariffs and quotas lead to a decrease in imports, a decrease in domestic consumption, and an increase in domestic production
Indicate whether the statement is true or false