Which of the following would cause the nominal exchange rate to depreciate?
A) The real exchange rate appreciates.
B) The domestic inflation rate increases.
C) The foreign inflation rate increases.
D) The government budget deficit increases.
B
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In a market economy, the main market signal to competitive suppliers is
a. the number of consumers b. consumers' income c. the rate of inflation d. the price of the product e. the unemployment rate
The current chairman of the Federal Reserve Board of Governors is
a. Milton Friedman b. Alan Greenspan c. Paul Volcker d. James Baker e. John Maynard Keynes
An example of an industrial policy would be all except:
A. interest rate restrictions. B. trade barriers. C. tax breaks. D. subsidies.
An increase in the subsidy paid to producers of tobacco
A. shifts the demand for tobacco to the left. B. shifts the demand for tobacco to the right. C. shifts the supply of tobacco to the right. D. shifts the market price of tobacco.