Expansionary monetary policy:
A. increases the demand for domestic currency in the foreign exchange market and reduces the supply.
B. reduces only the demand for the domestic currency in the foreign exchange market.
C. reduces only the supply of domestic currency in the foreign exchange market.
D. reduces the demand for the domestic currency in the foreign exchange market and increases the supply.
Answer: D
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During the twentieth century, the market structure of the U.S. economy has
A) become less competitive. B) remained about the same. C) become more competitive. D) become mostly monopolies.
If a constant-growth-rate-of-money policy is to achieve constant growth of nominal GDP, velocity
A) does not matter since the money supply is growing steadily. B) must grow at a steady and predictable rate. C) must be constant. D) must shrink over time at the same rate as money grows.
If the market price falls below a firm's minimum average total cost, the firm should:
A. definitely stop production. B. definitely continue to operate at a loss. C. consider how to minimize its losses. D. pay only fixed costs.
Which of the following is not included in a nation's balance of payments?
a. International interest and dividend earnings. b. Total holdings of the central bank's international reserves. c. Financial service sales by domestic banks to foreign customers. d. All of the above are included in the balance of payments.