When real interest rates fall in the United States relative to interest rates in Japan, the yen appreciates and the dollar depreciates
Indicate whether the statement is true or false
True
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Excess reserves are the
A) amount of reserves held over what is desired. B) amount of reserves banks keep in their vaults. C) amount of reserves a bank holds at the Fed. D) amount of reserves the Fed requires banks to hold. E) same as the required reserves.
If taxes are increased, the AD curve
A) is not affected because a change in taxes is a nominal change not real change. B) shifts rightward and aggregate demand decreases. C) shifts leftward and aggregate demand decreases. D) does not shift but there is a movement down along the curve.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. the market ceases to be efficient.
B. total surplus will decline.
C. deadweight loss will occur.
D. All of these are true.
A large tax cut in the United States should lead to an increase in the trade deficit
a. True b. False Indicate whether the statement is true or false