If on Monday $1 = 146 Japanese yen and on Friday $1 = 147 yen, the dollar appreciated and the yen depreciated
a. True
b. False
A
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Which of the following empirical studies provided the most support for the heckscher-Ohlin model?
A) the study by Wassily Leontief B) the study by Bowen, Leamer, and Sveikauskas C) the study by David Ricardo D) the study by Adam Smith E) the study by Davis and Weinstein
In the permanent-income hypothesis incorporating rational expectations, the short-run MPC is high when changes in current income
A) are small. B) are considered a good predictor of future income changes. C) are considered a poor predictor of future income changes. D) occur when the economy is nearing cyclical peaks or troughs.
An inferior good is one for which demand increases as
a. price decreases b. price increases c. income increases d. income decreases e. the price of a related good decreases
How would budget deficit reduction through reduced government spending affect economic growth?
a. It would not affect economic growth because the budget deficit and economic growth are unrelated. b. It would stimulate economic growth. c. It would hinder economic growth. d. It would not affect economic growth because the positive and negative effects of deficit reduction would cancel each other out. e. It depends on which government programs are cut to achieve deficit reduction.