If inflation in the United States is higher than in Japan, what will happen to the exchange rate between the U.S. dollar and the Japanese yen?
a. The dollar and yen will both depreciate.
b. The dollar and yen will both appreciate.
c. The dollar will depreciate and the yen will appreciate.
d. The dollar will appreciate and the yen will depreciate.
c
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An increase in inflation expectations shifts the short-run Phillips curve right and has no effect on the long-run Phillips curve
a. True b. False Indicate whether the statement is true or false
What was the double liquidity shock that occurred in the US financial system in the summer of 2007?
What will be an ideal response?
A situation in which society may not be able to rank its preferences consistently through paired-choice majority voting refers to:
A. logrolling. B. the paradox of voting. C. the median-voter model. D. the special-interest effect.
Suppose that in the market for paper, demand is p = 100 - Q. The private marginal cost is MCp = 10 + Q. Pollution generated during the production process creates external marginal harm equal to MCe = Q. What is the socially optimal level of output?
A) 20 B) 25 C) 30 D) 45