If, at the current exchange rate between the dollar and the Norwegian kroner of 5.78 kroner per dollar, the dollar is "overvalued," how do you expect demand and supply in the foreign exchange markets to respond?
A) The demand for the dollar will fall, while the supply of the kroner will rise.
B) The demand for the dollar will rise, while the supply of the kroner will fall.
C) The supply of the dollar will rise, while the demand for the kroner will fall.
D) The supply of the dollar will rise, while the demand for the kroner will rise.
D
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According to Keynes, the "stickiness" of wage rates could best be explained by
A) short-term labor contracts. B) minimum wage laws. C) unions and long-term labor contracts. D) government interference.
Refer to Figure 12-1. If the firm is producing 200 units
A) it should increase its output to maximize profit. B) it is making a loss. C) it breaks even. D) it should cut back its output to maximize profit.
During the financial crisis of 2007-2009, the Fed's quantitative easing program raised fears of inflation among investors, and to combat this fear, the Fed announced it would withdraw the monetary stimulus as the economy recovered
What happened to inflationary expectations during the latter part of the 2007-2009 recession? A) Inflationary expectations decreased based on the Fed's promise to withdraw stimulus money from the economy. B) Inflationary expectations increased to record high levels despite the Fed's promise to withdraw stimulus money from the economy. C) Inflationary expectations did increase, but the increase only returned expected inflation to its pre-recession level. D) Inflationary expectations decreased to the point where the Fed became worried about the economy becoming deflationary.
To John Maynard Keynes, investment demand depends less upon the availability of saving than upon the profit expectations of producers
Indicate whether the statement is true or false