Other fundamental things being equal, an increase in the exchange-rate value of the domestic currency will cause the current account to
A. become smaller than the (nonofficial) financial account.
B. move toward a deficit.
C. move toward a long-run equilibrium.
D. become more unbalanced.
Answer: B
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Consumer surplus is equal the area below the _________ and above___________
A. Price; Supply Curve B. Demand Area; Price C. Demand Curve; Supply Curve D. Price; Demand Curve E. Supply Curve; Demand Curve
Which movie is an allegory about late 19th century monetary policy?
a. The Wizard of Oz b. Mary Poppins c. It's a Wonderful Life d. Trading Places
The equation Y = f(P - Pe) represents the
A. income velocity of money. B. Lucas supply function. C. Keynesian consumption function. D. equation of exchange.
When government purchases are increased, the amount of the increase in aggregate demand primarily depends on
A. income taxes. B. the size of the marginal propensity to consume. C. the average propensity to consume. D. exchange rates.