If the Fed’s monetary policy causes a substantial decrease in interest rates, what is the most likely impact on velocity?
A. Velocity will decrease.
B. Velocity will increase.
C. Velocity will remain constant.
D. Velocity is unrelated to interest rates.
Answer: A
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An issue never confronted effectively by GATT, but considered an important issue for WTO is that of
A) the promotion of freer World trade. B) the promotion of freer World commodity trade. C) the promotion of freer World services trade. D) the lowering of tariff rates. E) the liberalization of trade.
A Swiss consumer wants to buy an American laptop. The exchange rate is 1USD=0.89CHF (Swiss Francs). The laptop costs $800 . How much would the laptop cost him in Swiss Francs?
a. 1200 Francs b. 1160Francs c. 890Francs d. 712 Francs
The Jordanian government might consider devaluing its currency (the dinar)
a. if domestic inflation is high b. if Jordan has a large trade deficit c. if Jordan has achieved full employment d. if the dollar is appreciated e. if Jordan has a large trade surplus
If in fiscal year 2015, the federal government receives $2.2 trillion in revenues and spends $3.5 trillion for goods and services, the national debt will
a. increase by $2.2 trillion. b. increase by $1.3 trillion. c. decrease by $1.3 trillion. d. decrease by $2.2 trillion.