Other things being equal, which of the following is a necessary consequence of a depreciation of the U.S. dollar against other currencies?
A. The terms of trade will move in favor of the United States
B. The United States will experience an increase in the volume of imports
C. International speculators will buy U.S. dollars and sell other currencies
D. U.S. exports will become cheaper relative to other nations' products
D. U.S. exports will become cheaper relative to other nations' products
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In response to the destructive bank panics of the Great Depression, future bank panics are designed to be prevented by
A) establishing a fractional reserve system of banking. B) increasing the required reserve ratio to 100%. C) the establishment of the Federal Deposit Insurance Corporation. D) the Federal Reserve System conducting open market operations. E) the Federal Reserve System acting as a lender of last resort.
All of the following would cause the aggregate demand curve to shift EXCEPT
A) a rise in real interest rates. B) an increase in taxes. C) improvements in economic conditions in other countries. D) a decrease in the price level.
Which of the following statements about public goods is not true?
A. They are only produced by government agencies. B. They are non-excludable since those who do not pay for them cannot be excluded from enjoying them. C. They will be under supplied by the private sector. D. They bestow collective benefits on members of society.
New classical macroeconomic theory emphasizes the role of "sticky" prices in the economy
Indicate whether the statement is true or false