If the United States looks more economically and politically stable relative to the rest of the world, this will
A) decrease the demand for dollars.
B) increase the demand for dollars.
C) have no effect on the demand for dollars.
D) stop all trading between the currencies of the United States and other countries.
Answer: B
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The figure above shows the production possibilities frontiers for four nations that have identical production possibilities frontiers in the present. The one that will grow most rapidly in the future is most likely to be producing at point
A) A. B) B. C) C. D) D.
Assuming that the part of the government's budget used for military expenditures reduces the amount available for consumption expenditures and that the benefits to military expenditures take longer to accrue than consumption expenditures, _____
decision-makers will _____. a. democratic; be biased against military spending b. democratic; be biased in favor of military spending c. autocratic; be biased in favor of consumption d. autocratic; be biased in favor of military spending
Trade restrictions have been defended on the grounds that they
a. raise prices domestically and thus benefit consumers b. increase imports c. lower prices domestically and thus benefit consumers d. decrease product quality in domestic markets e. protect domestic infant industries
Based on the given figure, the economy is initially at point A on the monetary policy reaction function (RF1) and the aggregate demand curve (AD1). The actual rate of inflation is ?' and the Federal Reserve's target inflation rate is ?*1. 
If the Federal Reserve raises its target inflation rate to ?*3, then the Federal Reserve's monetary policy reaction function will ________ and the aggregate demand curve will ________.
A. shift to RF3; shift to AD2 B. shift to RF2; shift to AD3 C. shift to RF2; shift to AD2 D. shift to RF3; shift to AD3