An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from
a. higher anticipated costs of production in the U.S.
b. higher interest rates and higher inflation in the U.S.
c. higher growth rates in the trading partner's economy
d. a change in the terms of trade
e. lower export industry productivity
c
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Bond prices and interest rates are inversely related
Indicate whether the statement is true or false
Which of the following is most likely to be an implicit cost of production?
a. property taxes on a building owned by the firm b. transportation costs paid to a trucking supplier c. rental payments for a building utilized by the company and rented from another party d. interest income foregone on funds invested in the firm by the owners
Fiscal policy is sometimes initiated on the advice of the
A. Congressional Budget Office. B. Federal Reserve Board. C. Joint Economic Committee. D. Council of Economic Advisers.
In the real business cycle model, fluctuations in employment are explained by ________
A) changes in the composition of household assets B) intertemporal substitution as real wages and real interest rates changes C) changes in the marginal propensity to consume D) the impact of a change in price on quantity demand and quantity supplied in goods markets