A decrease in the domestic interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
D
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Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially, ________
A) the economy remains at full employment B) structural unemployment increases C) there is a shortage of workers in both sectors D) cyclical unemployment increases
Refer to the above figure. The economy initially is at point A. The Fed unexpectedly increases the money supply. Which of the following statements are TRUE?
A) In the short run, the economy will move from point A to point C. In the long run, the economy will move to point B. B) In the short run, the economy will move from point A to point C. In the long run, the economy will move back to point A. C) In the short run, the economy will move from point A to point B. In the long run, the economy will stay at point B. D) In the short run, the economy will move from point A to point B. In the long run, the economy will move back to point A.
When changes in the supply of money are implemented, it makes interest rates change in the _____ direction as the shift in the money supply curve and makes aggregate demand change in the _____ direction as the shift in the money supply curve. a. Same; same
b. Same; opposite. c. opposite; same. d. Opposite; opposite.
Price ceilings sometimes result in some buyers and sellers purchasing the good at prohibited prices
Indicate whether the statement is true or false