Consider the currency market for British pounds and U.S. dollars. An increase in the demand for British pounds results in a(n) ________ of the pound and a(n) ________ of the dollar.
A. depreciation; depreciation
B. depreciation; appreciation
C. appreciation; depreciation
D. appreciation; appreciation
Answer: C
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Suppose the required reserve ratio is 3 percent, and currency and reserves total $10 million. The maximum change in the money supply that can be supported is:
A. $13 million. B. $30 million. C. $97 million. D. $333.3 million.
When the Fed is changing the quality of the assets it holds, this is called:
A. precommitment policy. B. quantitative easing. C. operation twist. D. credit easing.
Using the data in the above table, what is the real GDP for year 2020 (in billions of constant dollars)?
A. 9,250 B. 7,708 C. 8,950 D. 8,500
Which of the components of total planned autonomous spending has a negative multiplier, and one which is lower in absolute value than the multiplier of the others?
A) autonomous consumption B) net taxes C) planned investment D) government expenditure E) net exports