Suppose the U.S. dollar depreciates, and there is no change in monetary policy. Which of the following is a correct description of the short-run consequences?
A) output, inflation, and the real interest rate have all increased
B) output, inflation, and the real interest rate have returned to their original values
C) output and inflation are higher, while the real interest rate has fallen
D) output and inflation have returned to their original values, while the real interest rate is increased
A
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Stagflation occurs when short-run aggregate supply decreases
Indicate whether the statement is true or false
Except during the Great Depression, net investment has always been ________
A) equal to depreciation B) equal to zero C) positive D) negative
If the money multiplier is approximated to be 4, then the reserve ratio must be:
A. 25 percent. B. 2.5 percent. C. 5 percent. D. 4 percent.
The opportunity cost of a decision is the value of the best foregone alternative to the decision-maker
a. True b. False Indicate whether the statement is true or false