In order to bring about a real depreciation of the dollar, the U.S. can hope for
A) a rise in the U.S. price level.
B) a fall in foreign price levels.
C) a rise in the dollar's nominal value in terms of foreign currencies.
D) a rise in foreign price levels or a fall in the dollar's nominal value in terms of foreign currencies.
E) increased output and full employment.
D
You might also like to view...
Over short time periods, deficits can help the economy cope with shocks
Indicate whether the statement is true or false
The term barter refers to exchanges made:
a. only with the use of money. b. without the use of money. c. outside the U.S. economy. d. only in underdeveloped countries. e. within countries in a monetary union.
An increase in the price of blueberries would lead to a(n)
a. increased supply of blueberries. b. a movement up and to the right along the supply curve for blueberries. c. a movement down and to the left along the supply curve for blueberries. d. Both a and b are correct.
If the CPI was 228 at the end of 2007 and 236 at the end of 2008, what was the inflation rate in 2008?
A) 236 percent B) 3.5 percent C) 8 percent D) 4 percent E) 3.4 percent