According to purchasing-power parity, if the Federal Reserve increased the money supply
a. U.S. prices would rise and the nominal exchange rate would rise.
b. U.S. prices would rise and the nominal exchange rate would fall.
c. U.S. prices would fall and the nominal exchange rate would rise.
d. U.S. prices and the nominal exchange rate would fall.
b
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What are the effects of an expansionary monetary policy on interest rates and output in an open economy with floating exchange rates?
What will be an ideal response?
The most likely substitute good for hot dogs would be:
A. ketchup. B. burgers. C. potato chips. D. a plate.
To decide which of the two goods is a better buy, a consumer should compare the products' _____
a. marginal utilities b. total utilities c. marginal utilities per dollar d. total utilities per dollar e. disutility
If the price of inputs falls and the level of consumer indebtedness rises: a. Price index rises, and real GDP rises. b. Price index rises, and real GDP falls. c. Price index rises, and the change in real GDP is uncertain
d. Price index falls, and real GDP rises. e. Price index falls, and the change in real GDP is uncertain.