Which of the following statements is false?
A) The exchange rate is the price of one (country's) currency in terms of another (country's) currency.
B) A currency has appreciated in value if more of a foreign currency is needed to buy it.
C) A change in the money supply can change aggregate demand.
D) A change in business taxes can change investment, which can change aggregate demand.
E) none of the above
E
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A common misperception about consumer demand is that
A. demand depends on many other variables. B. price is a major determinant of quantity. C. it is a fixed amount. D. quantity cannot be determined in advance. E. All of these responses are correct.
When looking at this graph for the welfare effects of a price ceiling, the loss to producers created by the price ceiling is ______.
a. area d + e
b. everything below the supply curve
c. everything above the demand curve
d. area c + e
According to the Keynesian view of aggregate supply, an increase in the money supply will:
A. Always cause inflation. B. Cause inflation if the economy is at full employment. C. Cause inflation only if aggregate supply is horizontal. D. Never cause inflation.
One purpose of interest-rate ceilings was to: a. establish a ceiling on bank profits
b. establish a floor on bank profits. c. encourage competition in other areas. d. eliminate the need for the FDIC. e. reduce the chance of bank failures.