Everything else held constant, if a central bank makes a sterilized sale of foreign assets, then the domestic currency will
A) appreciate.
B) depreciate.
C) either appreciate, depreciate, or remain constant.
D) not be affected.
D
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The demand for money is based on
A) the demand for consumption, demand for investment, and demand by government. B) the demand for cash, demand for securities, and the demand for real estate. C) a demand for liquidity and wealth. D) the transactions demand, asset demand, and precautionary demand.
Q: How many economists does it take to change a light bulb? A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of
A) classical economists. B) Keynesian economists. C) economists who contend that money illusion never occurs. D) economists who conclude that wages and prices are very flexible.
If a union is able to increase the demand for union-made goods,
a. wages will increase but employment will decrease b. wages will increase and employment will increase c. wages will decrease but employment will increase d. wages will decrease and employment will decrease e. the demand for non-union labor will increase
If MPPa/Pa > MPPb/Pb, then the proportions of these two inputs is optimal
a. True b. False Indicate whether the statement is true or false