Suppose the Japanese yen increases in its value relative to the U.S. dollar. In the U.S. economy,
A) the price level will increase and real GDP will fall if the increase in aggregate demand is less than the decrease in aggregate supply.
B) the price level will increase and real GDP will fall if the decrease in aggregate demand is more than the increase in aggregate supply.
C) the price level will fall and real GDP will increase if the increase in aggregate supply is greater than the decrease in aggregate demand.
D) the price level will fall and real GDP will decrease if the decrease in aggregate demand is less than the increase in aggregate supply.
A
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Financial securities that represent promises to repay a specified amount of money at a particular point in the future are
A) bonds. B) stocks. C) commodities. D) mutual funds.
Which price index published by the US federal government represents wholesale price changes?
A) Consumer Price Index B) Producer Price Index C) GDP deflator D) Dow-Jones Industrial Average
When there are omitted variables in the regression, which are determinants of the dependent variable, then
A) you cannot measure the effect of the omitted variable, but the estimator of your included variable(s) is (are) unaffected. B) this has no effect on the estimator of your included variable because the other variable is not included. C) this will always bias the OLS estimator of the included variable. D) the OLS estimator is biased if the omitted variable is correlated with the included variable.
In order to meet a deficiency of required reserves, a bank could: a. buy securities
b. deposit vault cash with the Fed. c. turn some of its deposits at the Fed into cash. d. close some checking accounts. e. borrow from another bank in the federal funds market.