For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that an increase in stock market wealth causes an increase in consumption. Which of the following will tend to occur in a fixed exchange rate regime?
A) an increase in Y
B) an increase in the money supply
C) no change in the domestic interest rate
D) all of the above
D
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Government expenditures included in the expenditure approach to GDP include ________
A) Social Security and education B) net exports C) buying a new bomber D) Both answers A and C are correct.
The figure above shows the marginal revenue, marginal cost, and demand curves for an airline offering daily flights between Los Angeles and Toronto
If the airline is regulated using a marginal cost pricing rule ________ flights will be offered each month at a price of ________ per flight. A) 200; $300 B) 200; $100 C) 300; $200 D) 400; $100
What do externalities cause markets to do?
a) benefit producers at the expense of consumers b) cause markets to operate more equitably c) fail to allocate resources efficiently d) cause price to be different than equilibrium price
If the CPI is now 95, then prices have _____ since the base year.
A. fallen by 95 percent B. fallen by 5 percent C. risen by 5 percent D. risen by 95 percent