An appreciation in the value of the dollar would
a. make U.S. goods less expensive to foreigners.
b. encourage U.S. consumers to buy more foreign goods.
c. increase the number of dollars that could be purchased with a Mexican peso.
d. discourage U.S. consumers from traveling abroad.
B
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In the figure above, when the price falls from $8 to $7, total revenue
A) increases from $120 to $210 so demand is elastic. B) decreases from $210 to $120 so demand is inelastic. C) increases from $120 to $210 so demand is inelastic. D) decreases from $210 to $120 so demand is elastic. E) increases from $120 to $210, but more information is needed to determine whether demand is elastic, inelastic, or unit elastic.
If the Fed buys Treasury bills, this will shift the
A) money demand curve to the right. B) money supply curve to the left. C) money demand curve to the left. D) money supply curve to the right.
A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket
A) equaled $160 in 1983. B) rose 160% from the cost of the market basket in the base year. C) rose 60% from the cost of the market basket in the base year. D) equaled $160 in 1996.
When the policy rate hits its lower bound and inflation keeps falling, this portion of the Monetary Policy curve is
A) downward sloping. B) upward sloping. C) flat. D) undetermined.