When equilibrium is present in the foreign exchange market, which of the following will tend to be in balance?
a. the value of goods exported and the value of goods imported
b. real and nominal interest rates
c. imports plus capital outflow and exports plus capital inflow
d. tax revenues and government expenditures
C
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The most important function of money is to
A) allow for positive interest rates. B) enable people to measure their own personal worth. C) facilitate the collection of taxes. D) encourage greed among people. E) serve as a medium of exchange.
A fiscal policy that changes over time as economic conditions change is considered to be time inconsistent
a. True b. False Indicate whether the statement is true or false
If the U.S. dollar appreciates against the Japanese yen:
A. Japanese goods will be more expensive in the United States. B. the U.S. dollar will buy fewer Japanese yen. C. Japanese goods will be cheaper in the United States. D. U.S. goods will be cheaper for Japanese consumers.
After the U.S. government deregulated the trucking industry:
A. profits rose. B. freight prices rose. C. freight prices fell. D. the number of trucking companies decreased.