If exchange rates are floating, an expansionary fiscal policy in the United States will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________
A) appreciate; increase
B) appreciate; decrease
C) depreciate; increase
D) depreciate; decrease
B
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Reserve requirements are set by
A) the Secretary of Treasury. B) the President. C) Congress. D) the Fed.
The open-economy macroeconomic model takes
a. GDP, but not the price level as given. b. the price level, but not GDP as given. c. both the price level and GDP as given. d. the price level and GDP as variables to be determined by the model.
When the money supply increases at the same time that velocity is decreasing, total spending will
A) always rise. B) always decline. C) fall if the decrease in velocity is relatively less than the increase in the money supply. D) fall if the decrease in velocity is relatively greater than the increase in the money supply.
The market for corn in Kansas is considered to be competitive. This means there are ________ buyers and ________ sellers of corn in Kansas.
Fill in the blank(s) with the appropriate word(s).