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
You might also like to view...
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.
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.
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.