A decrease in the real interest rate in the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP
A) appreciate; increase
B) appreciate; reduce
C) depreciate; increase
D) depreciate; reduce
C
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Which of the following is counted in GDP?
A) the value of do-it-yourself work B) the value of leisure C) the value of goods and services produced in the underground economy D) the cost of a speed boat purchased by drug smugglers
An import quota taxes an import but does not set a limit on how much may be imported
a. True b. False
Nontradables are cited as a reason why purchasing power parity doesn't hold because:
A. there is no economic opportunity to profit if the goods cannot be sold in another market for another price. B. location-specific goods are impossible to calculate a price elsewhere for. C. goods that you can't transport cannot be sold for a profit elsewhere, even if the price differs in different locations. D. All of these statements are true.
The part of the Federal Reserve System (the Fed) that directs the buying and selling of U.S. government securities is
A. the Federal Open Market Committee. B. the Federal Advisory Committee. C. the Federal Reserve district banks. D. the Board of Governors.