Holding all else constant, an economic expansion in Mexico should decrease the demand for U.S. dollars
Indicate whether the statement is true or false
FALSE
You might also like to view...
The evidence available suggests that the effects of devaluation appear to differ across countries and time so that no strong generalizations regarding the effects of devaluation on the balance of trade and/or balance of payments are possible
Indicate whether the statement is true or false
The steeper the LM curve
A) the more effective is monetary policy. B) the less effective is monetary policy. C) the greater is the interest-sensitivity of investment. D) the greater is the interest-sensitivity of the money supply.
Regulatory policies requiring lenders to extend more low down-payment loans to higher-risk borrowers along with the Fed's low short-term interest rate policy during 2002-2004 caused
a. housing prices to fall during that period. b. a reduction in the use of adjustable rate mortgages to finance the purchase of housing. c. a reduction in housing construction during 2002-2005. d. mal-investment, that is, excessive investment in housing construction during 2002-2005.
If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is
A. 2/3. B. 3/2. C. 2 D. 3 E. 8