Suppose U.S.-produced wheat costs $5 per bushel and the exchange rate is 100 yen = $1 . If the exchange rate changes to 90 yen = $1, the
a. wheat would now cost more dollars.
b. wheat would now cost the Japanese citizen less yen.
c. wheat would now cost less dollars.
d. wheat would now cost the Japanese citizen more yen.
e. yen has depreciated in value.
B
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How does the growth rate of real GDP contribute to an improved standard of living?
What will be an ideal response?
When an inverse relationship is graphed, the resulting line or curve is:
a. horizontal. b. vertical. c. upward-sloping. d. downward-sloping.
More than any other country, the citizens of _______ consider American dollar a much better medium of exchange and standard of value than their own currency.
Fill in the blank(s) with the appropriate word(s).
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher