Exports will increase when there is
A) a reduction in the real exchange rate.
B) a reduction in domestic output.
C) a reduction in foreign output.
D) all of the above
E) none of the above
A
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In the foreign exchange market, the exchange rate is volatile because the
A) factors that influence the supply of dollars also influence the demand for dollars. B) demand for dollars changes more frequently than the supply of dollars. C) both the demand curve for dollars and the supply curve of dollars are very flat. D) supply of dollars changes more frequently than the demand for dollars. E) None of the above is related to the volatility of the exchange rate.
Overseeing who operates banks and how they are operated is called
A) prudential supervision. B) hazard insurance. C) regulatory interference. D) loan loss reserves.
Policy that tries to influence target variables by changing the tax rates is called
A) fiscal policy. B) tax rate policy. C) recession policy. D) monetary policy.
A price floor is a price set below equilibrium by government and it creates a shortage
a. True b. False Indicate whether the statement is true or false