If the exchange rate changes from $1.45 = 1 euro to $1.37 = 1 euro, then
A) both the euro and dollar have appreciated.
B) the euro has appreciated and the dollar has depreciated.
C) the euro has depreciated and the dollar has appreciated.
D) both the euro and dollar have depreciated.
C
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If a bond's coupon adjusts to pay a constant real rate of return, then an increase in inflation would cause
A) the nominal coupon payment to rise. B) the nominal coupon payment to fall. C) the nominal coupon payment to remain unchanged. D) the bond's price to fluctuate wildly.
All else held constant, if the supply of money is increased ________.
A. the interest rates will rise B. the demand for money will increase C. investment spending will increase D. bond prices will fall
An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by
A) $200 billion. B) less than $200 billion. C) more than $200 billion. D) None of the above are correct. This policy shifts the long-run aggregate supply curve.
In deciding what to buy, the consumer will choose the good with the:
A. Highest marginal utility B. Lowest price C. Highest marginal utility-to-price ratio D. Lowest marginal utility-to-price ratio