Which of the following statements is most likely correct?
a. A nation may sometimes want a stronger exchange rate to stimulate aggregate demand and reduce a recession or to fight inflation.
b. A nation may sometimes want a weaker exchange rate to stimulate aggregate supply and reduce a recession or a stronger exchange rate to fight inflation.
c. A nation may sometimes want a stronger exchange rate to stimulate aggregate demand and fight inflation or a weaker exchange rate to reduce a recession.
d. A nation may sometimes want a weaker exchange rate to stimulate aggregate demand and reduce a recession or to fight inflation.
b. A nation may sometimes want a weaker exchange rate to stimulate aggregate supply and reduce a recession or a stronger exchange rate to fight inflation.
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A business firm should refuse to sell any item for which it cannot obtain a price at least as large as what
A) it cost the firm to produce the particular item. B) it costs the firm on average to produce the item. C) it would cost the firm to produce another item identical to the item being sold. D) the item will be worth to the firm if not sold.
Which of the following is an example of speculative demand?
A. When the demand for housing increases, the demand for house insurance increases. B. When the actual price of housing increases, the quantity demanded of housing decreases. C. When the price of home ownership increases, the demand for rental housing increases. D. When the expected price of housing increases, the demand for housing increases.
The long-run labor demand curve is:
A. more elastic than the short-run labor demand curve. B. less elastic than the short-run labor demand curve. C. either more or less elastic than the short-run labor demand curve. D. perfectly elastic (horizontal).
Firms and governments pay interest to the lenders that purchase their bonds.
Answer the following statement true (T) or false (F)