When the nominal exchange rate falls,
A. the domestic currency buys fewer units of foreign currency and the domestic currency has appreciated.
B. the domestic currency buys fewer units of foreign currency and the domestic currency has depreciated.
C. the domestic currency buys more units of foreign currency and the domestic currency has appreciated.
D. the domestic currency buys more units of foreign currency and the domestic currency has depreciated.
Answer: B
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The function which shows combinations of inputs that yield the same output is called a(n)
A) isoquant curve. B) isocost curve. C) production function. D) production possibilities frontier.
Recessions can sometimes last less than a single year
a. True b. False
If the Fed wants to lower the interest rate, it will
a. increase the money supply b. decrease the money supply c. increase money demand d. decrease money demand e. simply set a lower market interest rate
Efficiency means that
a. society is conserving resources in order to save them for the future. b. society's goods and services are distributed equally among society's members. c. society's goods and services are distributed fairly, though not necessarily equally, among society's members. d. society is getting the maximum benefits from its scarce resources.