An improvement in the quality of U.S. goods would lead to a ________ in the demand for dollars and a ________ in the exchange rate
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
A
You might also like to view...
In the consumer's NPV decision, the correct value for the interest rate R is
A) the interest rate that could be earned in a savings account when the consumer must borrow to finance the purchase. B) the interest rate that would have to be paid on a loan when the consumer could pay for the purchase with funds in a savings account. C) the interest rate charged for the loan when the consumer must borrow to finance the purchase. D) the prime rate, irrespective of whether when the consumer must borrow to finance the purchase. E) the prime rate plus the rate of inflation as measured by the CPI, irrespective of whether when the consumer must borrow to finance the purchase.
Refer to the above figure. Suppose demand is D2 and then increases to D3. The change in economic rent is
A) zero. B) area CIHF. C) area CIGO. D) area BJC.
A decline in aggregate demand is analogous to an upward movement along the short-run Phillips curve
a. True b. False Indicate whether the statement is true or false
From 2004 to 2006 the Fed raised the federal funds rate gradually in a series of steps. The Fed's purpose was to raise the prime interest rate so that:
A. high inflation rates would fall. B. aggregate demand would continue to grow consistently and with low inflation. C. aggregate supply would grow, increasing output and lowering the price level. D. banks would reduce lending that was building up unmanageable consumer debt.