You are planning a graduation trip to Mexico. Other things the same, if the dollar appreciates relative to the peso, then
a. the dollar buys fewer pesos. Your hotel room in Mexico will require fewer dollars.
b. the dollar buys fewer pesos. Your hotel room in Mexico will require more dollars.
c. the dollar buys more pesos. Your hotel room in Mexico will require fewer dollars.
d. the dollar buys more pesos. Your hotel room in Mexico will require more dollars.
c
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Which of the following would be most likely to induce Congress and the president to conduct expansionary fiscal policy? A significant
A) increase in net exports. B) decrease in investment spending. C) decrease in oil prices. D) increase in consumption spending.
The trade balance must equal the level of private and public saving in the country
Indicate whether the statement is true or false
The view that expectations change relatively slowly over time in response to new information is known in economics as
A) rational expectations. B) irrational expectations. C) slow-response expectations. D) adaptive expectations.
Which of the following statements is correct?
A) New classicals believe that the aggregate supply curve is vertical in the short run. B) New Keynesians believe that the aggregate supply curve is vertical in the short run. C) New Keynesians believe that the aggregate supply curve slopes upward in the long run. D) New classicals believe that the aggregate supply curve slopes upward in the short run.