The U.S. dollar will appreciate if
a. the U.S. demand for foreign exchange decreases.
b. the U.S. demand for foreign exchange increases.
c. the U.S. supply of foreign exchange decreases.
d. Americans want to buy more foreign goods.
e. foreigners want fewer American goods.
A
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Once you find the opportunity cost of producing one unit of a good, to find the opportunity cost of producing the other good, you must
A) take the inverse. B) do nothing because the opportunity cost for the first good is the same as the opportunity cost for the second good. C) multiply by the total amount produced of the second good. D) divide by the total amount produced of the second good. E) None of the answers is correct.
A lower price level causes
a. the entire aggregate expenditure to shift up. b. the entire aggregate demand curve to shift to the right. c. a movement along a given aggregate demand curve. d. both a movement along a given aggregate demand curve and the entire aggregate expenditure to shift up.
Which one of the following policies might the Fed initiate if it wanted to increase the money supply?
a. sell government securities b. increase the reserve requirement c. increase the discount rate d. decrease the reserve requirement
Which, if any, of the present values below are correctly computed?
a. A payment of $1,000 to be received one year from today, with a 8 percent interest rate, has a present value of $945.45. b. A payment of $1,000 to be received one year from today, with a 9 percent interest rate, has a present value of $911.11. c. A payment of $1,000 to be received one year from today, with a 10 percent interest rate, has a present value of $905.06. d. None of the above are correct to the nearest cent.