Why should the United States be concerned over a sharp depreciation of the U.S. dollar in the world marketplace?
What will be an ideal response?
Although a depreciated dollar would increase exports, sharp declines in the value of any currency may signal a lack of confidence in the political stability of a nation or in its economic strength. In the case of the United States, this concern would also reflect on the dollar’s use as international currency. A sharp decline in the dollar’s value would confiscate the purchasing power of governments, private institutions, and individuals holding dollar-denominated assets. If the decline were prolonged, their willingness to accept and hold dollars in the future would decrease.
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Jeff Kaufman decides to bank with Paris First National Bank (PFN). He opens a checking account by depositing $1,000 . According to the PFN balance sheet, after this initial $1,000 demand deposit, there are $1,000 in
a. reserves and $1,000 in demand deposits b. liabilities and $2,000 in demand deposits c. demand deposits and $0 in assets d. assets and $0 in liabilities e. reserves and $0 in liabilities
A monopsony firm in a labor market hires fewer workers than would a competitive firm
a. True b. False Indicate whether the statement is true or false
If a goal of a nation's residents is to increase marginal productivity, they should increase
A. expenditures on education. B. the inheritance tax. C. the marginal propensity to consume. D. exports.
Payment in the land market is called rent.
Answer the following statement true (T) or false (F)