Which of the following increases the price of the dollar relative to the Japanese yen?
A. a decrease in the demand for yen
B. a decrease in the supply of yen
C. an increase in the supply of dollars
D. a decrease in the demand for dollars
Answer: A
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Suppose that at the prevailing yen-dollar exchange rate there is an excess demand for dollars. To stabilize exchange rates, the United States might
A. Reduce government spending. B. Pursue contractionary monetary policy. C. Raise interest rates. D. Lower taxes.
Purchasing power parity is used to estimate:
A. changes in price levels, not exchange rates. B. changes in both short-run and long-run exchange rates. C. only changes in short-run exchange rates. D. only changes in long-run exchange rates.
A proprietorship is a business
A. which produces a service rather than goods. B. in which the stock of the company is closely held by members of one family. C. owned by one individual who is responsible legally for the debts of the firm. D. with annual sales below $100,000.
According to the Federal Reserve, household wealth in the United States fell by more than $11 trillion in 2008
Predict the effect this decrease in wealth had on the equilibrium real wage and level of employment, and use a graph to support your answer.