Suppose the dollar depreciates from 89 Japanese yen to 79 Japanese yen. One would expect
a. U.S. imports to increase
b. U.S. exports to increase.
c. Japanese exports to increase.
d. Japanese net exports to increase.
b
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Credit-driven bubbles ________
A) occur exclusively within the financial sector B) are more likely to be identified by central bank officials than by market participants C) are best contained with a policy of high real interest rates D) are harder to identify than expectations-driven bubbles
Cost pull inflation occurs when the:
A. price of a key input increases suddenly. B. price level changes in response to changes in the business cycle. C. price of necessity goods increases suddenly. D. business cycle becomes sporadic and unpredictable.
Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price.
Select whether the statement is true or false. A. True B. False
If the interest rate rises, you would expect the price of any stock to
A. rise. B. fall. C. be unaffected. D. fall to zero.