A depreciation of the dollar under perfect capital mobility would cause
a. the LM curve to shift to the left.
b. the LM curve to shift to the right.
c. the IS curve to shift to the right.
d. the IS curve to shift to the left.
e. the BP curve to shift up.
A
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Assume the graph shown represents the market for pizzas sold in an hour. If the original equilibrium was D and S1. Which of the following is true when S1 shifted to S2?
A. Equilibrium price decreased by $5.
B. Equilibrium quantity increased by 20.
C. Equilibrium price increased by $5.
D. Equilibrium quantity increased by 30.
The primary tool the Fed uses to control the money supply today is: a. the discount rate
b. the required reserve ratio. c. the discount window. d. chartering. e. open market operations.
If the rightward shift of the supply curve is greater than the leftward shift of the demand curve, the equilibrium price will ______ and the equilibrium quantity will ______.
a. rise; fall b. fall; rise c. rise; rise d. fall; fall
Which of the following can make the unemployment rate fall?
A. A decrease in the number of people who are looking for work. B. An increase in the number of people with jobs. C. A decrease in the number of people who are looking for work and an increase in the number of people with jobs. D. An increase in the number of people neither working nor looking for work.