An increase in the U.S. money supply would cause the value of the dollar to ________ and U.S. net exports to ________ in the short run using a Keynesian model.
A. fall; rise
B. fall; fall
C. rise; fall
D. rise; rise
Answer: B
You might also like to view...
At what quantity is Sarah Machinery indifferent between two technologies?
a. 5 b. 6 c. 7 d. 8
If funds are being loaned from one commercial bank's excess reserves on deposit with the Federal Reserve to another commercial bank's deposit account at the Fed, the transaction is taking place in:
a. the discount market. b. the currency exchange market. c. the federal funds market. d. the open market. e. the reserves market
When sketched as a function of national income, the investment curve is
a. horizontal b. vertical c. upward sloping d. downward sloping e. parabolic
All other things remaining the same, a large increase in the net number of Mexican immigrant workers in the United States from Mexico causes:
a. U.S. GNP to be greater than the U.S. GDP. b. U.S. GNP to be less than the U.S. GDP. c. U.S. gross private domestic investment to rise. d. U.S. GNP to be greater than the U.S. GDP because U.S. gross private domestic investment rises