The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:
A. U.S. consumers increase their preference for Japanese cars.
B. the U.S. Federal Reserve eases monetary policy.
C. the Bank of Japan eases monetary policy.
D. the Bank of Japan tightens monetary policy.
Answer: C
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Critics of the Federal Reserve maintain that, to correct the credibility problem of monetary policy, the Fed should:
a. tighten monetary policy. b. be required to maintain a growth rate of the money supply that is fixed by law. c. give more power to the Federal Open Market Committee. d. ignore public opinion and establish more discretionary power over monetary policy. e. merge with the U.S. Treasury and be dissolved as an independent agency.
For a given level of money and real GDP, an increase in velocity would lead to an increase in the price level
a. True b. False Indicate whether the statement is true or false
In 2017, about what percentage of total income was earned by the poorest fifth of all U.S. households?
A. 12 percent B. 6 percent C. 3 percent D. 1 percent
The labor supply curve faced by an individual firm in a perfectly competitive market is
A. horizontal. B. upward sloping. C. vertical. D. downward sloping.