When the nominal exchange rate falls
A) the domestic currency buys more units of foreign currency and the domestic currency has depreciated.
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 fewer units of foreign currency and the domestic currency has appreciated.
B
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When a price fails to reflect all the costs of a product, too much of it is produced and/or consumed
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to cause the productivity of labor to increase?
a. higher money wages b. a higher rate of investment in human and nonhuman capital c. more flexible working hours and improved retirement plans d. an increase in the proportion of the workforce that belongs to a labor union
To decrease the money supply, the Fed could
a. sell government bonds. b. increase the discount rate. c. increase the reserve requirement. d. All of the above are correct.
Suppose the reserve requirement is 5 percent. How much would reserves need to be initially increased to eventually increase the money supply by 1,000?
A. 500 B. 250 C. 50 D. 25