Other things equal, in an open economy, monetary policy to offset a contractionary gap will tend to
a. Lower the exchange value of the dollar and lower net exports.
b. Lower the exchange value of the dollar and raise net exports.
c. Raise the exchange value of the dollar and lower net exports.
d. Raise the exchange value of the dollar and raise net exports.
b
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Individual investors who always want to hold gold are known as:
A) goldfinger B) golden boys C) gold bugs D) goldilocks
The total tariff revenue to the government of an imported good is found by adding the tariff to the quantity of the good imported
a. True b. False Indicate whether the statement is true or false
Price elasticity of demand along a linear, downward-sloping demand curve increases as price falls
a. True b. False Indicate whether the statement is true or false
If the price of a good in the U.S. is $10, the exchange rate is 2 units of foreign currency per dollar, and the foreign price of the same good is 30 units of foreign currency, then the real exchange rate is 2/3
a. True b. False Indicate whether the statement is true or false