If the U.S. interest rate differential falls, then the exchange rate
A) does not change.
B) definitely falls.
C) definitely rises.
D) falls only if it was the U.S. interest rate that changed.
E) rises only if it was the foreign interest rate that changed.
B
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An increase in the price level, other things equal, will shift the ________.
A. consumption and net exports schedules of the aggregate expenditures model upward, but the investment schedule downward B. consumption, investment, and net exports schedules of the aggregate expenditures model upward C. consumption, investment, and net exports schedules of the aggregate expenditures model downward D. consumption and investment schedules of the aggregate expenditures model upward, but the net exports schedule downward
When a good is imported into the United States, a ________is created
A) supply of foreign currency with no effect on the market for the dollar B) demand for dollars with no effect on markets for foreign currencies C) supply of foreign currencies and a demand for dollars D) demand for foreign currencies and a supply of dollars
Discuss the options for financing a balance of payments deficit
What will be an ideal response?
The unemployment rate is 10 per cent. The rate of job separation is 5 per cent. How high does the rate of job finding have to be to keep the unemployment rate constant?
A. 10 per cent B. 45 per cent C. 50 per cent D. 90 per cent