If the Japanese government enters the foreign exchange market and sells yen to attain a specific exchange rate with the dollar, the dollar will ________ and the yen will ________.
A. depreciate; depreciate
B. depreciate; appreciate
C. appreciate; depreciate
D. appreciate; appreciate
Answer: C
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Refer to the graph shown.
A movement from A to B is most likely to be caused by ________.
A. a decrease in aggregate demand B. an increase in input prices C. a decrease in input prices D. an increase in aggregate demand
The ability to control a scarce resource or input is a characteristic of perfect competition.
Answer the following statement true (T) or false (F)
Both ________ and ________ are monetary liabilities of the Fed
A) securities; loans to financial institutions B) currency in circulation; reserves C) securities; reserves D) currency in circulation; loans to financial institutions
If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be:
a. 4.00. b. 2.50. c. 0.40. d. 0.25.