If expansionary monetary policy reduces real interest rates in the United States, which of the following is most likely to occur?
a. Net foreign investment will decline, causing the dollar to depreciate and net exports to increase.
b. Net foreign investment will decline, causing the dollar to appreciate and net exports to decrease.
c. Net foreign investment will increase, causing the dollar to appreciate and net exports to decline.
d. Net foreign investment will increase, causing the dollar to depreciate and net exports to increase.
A
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Which of the following statements is an example of the Fed's conditional commitment policy?
A) "In these circumstances, the Committee believes that policy accommodation can be maintained for a considerable period." B) "The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time." C) "Policy accommodation can be removed at a pace that is likely to be measured." D) "The exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, and inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal."
If the prevailing price of shirts is $10 and at this price demanders demand 100 shirts while suppliers are willing to supply 110 shirts, there is a(n)
a. shortage at the $10 price. b. surplus at the $10 price. c. equilibrium in this market. d. shortage if price were to rise above $10.
What has been the economic effect of U.S. immigration in the last two decades?
a. Wages for low-skill jobs have declined. b. Wages for low-skill jobs have increased. c. The supply curve for unskilled labor has shifted to the left. d. Demand for skilled and unskilled labor has increased.
A higher domestic interest rate leads to ______.
a. depreciation in the value of the dollar b. appreciation in the value of the dollar c. less foreign investment in the U.S. d. less U.S. purchasing of foreign products