If the U.S. government enters the foreign exchange market and purchases dollars to maintain a specific exchange rate with the yen, the dollar will ________ and the yen will ________
A) depreciate; depreciate B) depreciate; appreciate
C) appreciate; depreciate D) appreciate; appreciate
C
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How did Operation Twist affect the monetary base?
A) reduced B) increased C) no change D) indeterminate
Which of the following is not a criticism of government spending as a solution to an inflationary gap?
a. It's hard to end new programs of government spending. b. Vested political interests tend to reduce spending. c. The economy has a natural tendency to self-correct. d. Government spending is not cost-free. e. Depreciation will lead to increased investment demand on its own.
Economic experiments show that people care more about winning a game than about its intrinsic fairness
a. True b. False Indicate whether the statement is true or false
An economist builds a model by beginning with certain self-evident principles and then derives the implications of that model. What approach is this economist taking?
A. Deductive B. Experimental C. Apophatic D. Inductive