If the U.S. dollar depreciates in the foreign exchange market, American exports will be __________ and American imports will be __________
a. more expensive; more expensive
b. cheaper; cheaper
c. less expensive; less expensive
d. less expensive; more expensive
e. there will be no change
D
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What is the only policy instrument the Fed really can control directly and precisely?
A) short-term interest rates B) the money supply C) high-powered money D) corporate tax rates
The relationship between the price level and the quantity of real GDP supplied is
a. full employment output. b. inflationary or recessionary gap. c. aggregate supply. d. supply-side equilibrium.
A shift to a more expansionary monetary policy will
a. increase the long-term growth rate of the economy. b. reduce the future rate of inflation. c. Stimulate output and employment almost immediately. d. Stimulate output and employment, but only after a time lag that is generally long and variable.
Borrowing is like:
A. buying the right to use your money for a time. B. buying the right to use someone else's money. C. selling the right to use your money for a time. D. selling the right to use someone else's money.