If the Fed is worried about inflation and wants to raise the interest rate, in the short run it can
A) increase the demand for money.
B) decrease the demand for money.
C) increase the quantity of money.
D) decrease the quantity of money.
E) directly raise the interest rate without affecting either the demand for money or the supply of money.
D
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If a dollar today will likely have more purchasing power because of inflation, then a dollar a year from now ________ a dollar today
A) will be more valuable than B) will have the same value as C) will be less valuable than D) may be more valuable or less valuable than
What is export promotion? Give a few examples of countries that have tried it
What will be an ideal response?
Refer to Scenario 15.1. If the interest rate falls,
A) the present value of this contract will fall. B) the present value of this contract will be unaffected. C) the present value of this contract will rise. D) Jacob will be paid less than $10 million each year. E) Jacob will be paid more than $10 million each year as he can invest the money.
Explain what a “cap and trade” program is and how it works. Does the United States have a cap and trade program? If so, is it successful?
What will be an ideal response?