A balance of payments deficit is defined as the amount by which
A. a country’s exports exceed its imports.
B. a currency must appreciate in order to reach equilibrium.
C. quantity supplied of a country’s currency exceeds quantity demanded.
D. quantity demanded of a country’s currency exceeds quantity supplied.
Answer: C
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Everything else held constant, in the market for reserves, when the federal funds rate equals the interest rate paid on excess reserves, raising the interest rate paid on excess reserves
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect of the federal funds rate.
Suppose the base year for a Lespeyres index is 2001. The value of the index is 1.3 in 2004 and 1.6 in 2006. By how much did the cost of the bundle increase between 2004 and 2006?
A. 0.3% B. 23% C. 0.23% D. 60%
If M = 9,000 . P = 6, and Y = 1,500, what is velocity?
a. 0.167. b. 1. c. 4. d. 36.
If exports rise and imports fall, then:
A. GDP will increase. B. GDP will decrease. C. GDP may remain unchanged. D. net exports will fall.