What will happen to the exchange rate between the euro and the U.S. dollar if U.S. interest rates increase?
What will be an ideal response?
Higher U.S. interest rates will increase the demand for dollars, so all else equal the dollar will appreciate in value relative to the euro.
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In response to already low short-term interest rates doing little to stimulate the economy during the Great Recession, the Fed began purchasing mortgage-backed securities and long-term government bonds to bring down long-term interest rates
This policy was called A) closed market operations. B) contractionary monetary policy. C) inflation targeting. D) quantitative easing.
Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's marginal revenue at a price of $60?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) $40 B) $60 C) $70 D) $50
Refer to the above figure. An excise tax of $0.50 was imposed on this good. From the figure we can see that the
A) producer will bear most of the tax. B) consumer will bear most of the tax. C) consumer and producer will share the tax. D) amount of the tax collected is less than $0.50.
Which of the following middle-income countries had higher fixed and mobile lines per 1,000 people, than the U.S. and Japan in 2009?
a. Brazil b. Russia c. China d. India