If a dollar is initially valued at 10 Swiss francs and its value changes to 12 Swiss francs, then the value of a Swiss franc (in terms of dollars) has
A. increased only if the demand for Swiss francs has increased.
B. remained the same.
C. increased.
D. decreased.
D. decreased.
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Use the following table to answer the next question. The money supply and investment are in billions.Money Supply (billions of dollars)Interest RateInvestment (billions of dollars)$507%$100606110705120804130903140Assume that the MPC is 0.9 and the reserve requirement is 0.2. If the Federal Reserve needs to increase aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 6%, then the Federal Reserve should ________ the money supply by ________.
A. increase, $10 billion B. increase, $20 billion C. decrease, $20 billion D. decrease, $10 billion
Why are only final goods and services included in measuring GDP? Give examples to complete your answer
What will be an ideal response?
One thing that Keynesians and Monetarists agree about is
a. the shape of the money demand function. b. that business cycles are primarily driven by changes in aggregate demand. c. the use of monetary and fiscal policy in stabilizing output. d. that the public forms their expectations primarily by looking backwards. e. both b and d.
The current international monetary system is best described as a: a. fixed exchange rate system. b. gold standard
c. dirty float system. d. free float system.