Under a flexible exchange rate system, an increase in the value of the U.S. dollar in terms of other currencies is referred to as
A) a depreciation of the U.S. dollar.
B) an appreciation of the U.S. dollar.
C) a monetizing of the U.S. dollar.
D) a devaluation of the U.S. dollar.
B
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Answer the following statements true (T) or false (F)
1. If a nation is producing a combination of goods inside its production possibilities curve, it is underutilizing its resources. 2. A nation’s production possibilities curve can be shifted outward by technological development. 3. A production possibilities curve will shift outward when additional resources are found. 4. Because of the high level of output in the United States, there is little need for choosing among alternative output combinations.
Asymmetric information discourages the movement of funds from savers to borrowers, because ________
A) big risks have high payoffs B) the safe choice is always preferable to the risky choice C) taking risks is inefficient D) the loss arising from a failed project must be borne by the borrower, rather than the lender
How many regional district banks are in the Federal Reserve System?
a. All banks are part of the system. b. 1 c. 12 d. 6
Double-digit inflation
a. has occurred in the United States in only three of the past fifty years b. has occurred throughout most of United States history c. is also called creeping inflation d. was the norm in the United States until the end of the Vietnam War e. has not occurred in the United States since the Great Depression