If currency speculators decide that the value of the dollar should rise in the future relative to the yen, this will increase the demand for dollars and decrease the supply of dollars

Indicate whether the statement is true or false


TRUE

Economics

You might also like to view...

Which of the following is TRUE regarding business cycles?

I. Cycles are predictable. II. In each cycle, a peak follows an expansion. III. Potential GDP fluctuates around real GDP. A) I and II B) I and III C) II and III D) II only

Economics

When Sam's annual income was only $15,000, he purchased 50 pounds of bananas a year. When his income rose to $18,000, he purchased 55 pounds a year. Therefore

A) for Sam, bananas are an inferior good. B) his income elasticity of demand for bananas is negative. C) his income elasticity and price elasticity of demand for bananas are both greater than one. D) for Sam, bananas are a normal good.

Economics

Liquidity increases as we move from the M1 to the M2 definition of the money supply

Indicate whether the statement is true or false

Economics

Suppose the economy is initially in long-run equilibrium. For each of the shocks listed below, explain the long-run effects on output and the price level

(a) Labor supply decreases. (b) The government shuts down the Bureau of Economic Analysis. (c) Productivity increases.

Economics