Assuming the United States is the "domestic" country, if the real exchange rate between the United States and Russia decreases from 28 to 23,
A) the prices of U.S. goods and services have increased by 22% relative to Russia.
B) the prices of U.S. goods and services have decreased by 5% relative to Russia.
C) the prices of U.S. goods and services have increased by 25.5% relative to Russia.
D) the prices of U.S. goods and services have decreased by 18% relative to Russia.
D
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If no foreign residents owned any of the U.S. public debt, then it would be true that
A) U.S. residents would essentially owe the public debt to themselves. B) there would be no distributional consequences associates with he public debt. C) there would be no interest payments on the public debt. D) the public debt would naturally disappear over time.
A country's current account
A) balance equals the change in its net foreign wealth. B) balance equals the change in its foreign wealth. C) surplus equals the change in its foreign wealth. D) deficit equals the change in its foreign wealth. E) balance equals its GNP.
The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price, and the CPI does not reflect this and ________ the cost of the market basket
A) change; overestimates B) change; underestimates C) do not change; overestimates D) do not change; underestimates
If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when the:
A. Economy's MPS is small B. Economy's MPS is large C. Economy's MPC is small D. Unemployment rate is low