If today the exchange rate is 1.00 euro per dollar and tomorrow the exchange rate is 0.98 euros per dollar, then the dollar ________ and the euro ________
A) depreciated; appreciated
B) appreciated; depreciated
C) depreciated; did not change
D) appreciated; appreciated
E) depreciated; depreciated
A
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The recovery from the low point of the Great Depression lasted for ____ months.
A. 12 B. 25 C. 50 D. 90
The goal of fiscal policy is to ________, and typically focuses on ________
A) balance the federal budget; tax rates and tax revenues B) stabilize the supply of money in the economy; price stability C) reduce the severity of economic fluctuations; employment and production D) eliminate balance of payments deficits or surpluses; exchange rate stability
Economists and psychologists are often on opposite sides of the economic growth debate. The nature of the debate is such that
a. economists emphasize the benefits of growth to finance valuable programs, and psychologists question whether more goods make people happier. b. economists emphasize that more money means more income for the government, and psychologists believe poorer people are happier. c. economists believe that economic growth imposes no serious costs on the economy, and psychologists question the statistical reliability of GDP numbers. d. economists stress the importance of money relative to leisure, and psychologists stress the importance of an unstructured life.
Which of the following policies is supported by the idea that producers and workers will demand higher prices and wages when they see the money supply expanding?
A. Discretionary policy B. Fixed rules C. The Fed's eclecticism D. Fiscal policy