A foreigner buying U.S. goods must buy dollars to purchase them
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
If the expected inflation rate rises from 3% to 5% when the nominal interest rate is 4%, the Fisher effect asserts that the nominal interest rate would
A) not change. B) rise to 6%. C) fall to 2%. D) fall to 3%.
If a competitive firm's marginal profit is positive at an output of 1000 units,
A) at 1000 units, MR = MC. B) it should produce more than 1000 units. C) it should produce less than 1000 units. D) at 1000 units, MR < MC.
The real interest rate is:
A. adjusted for inflation. B. the reported interest rate, not adjusted for inflation. C. the interest rate paid to savers. D. the interest rate charged to borrowers.
If the Fed raises the discount rate, what happens to reserves and the money supply?
a. Reserves increase and the money supply decreases. b. Both increase. c. Reserves decrease and the money supply increases. d. Both decrease.