In the above figure, suppose the economy is initially at point A. People come to expect the future U.S. exchange rate to be higher. As a result there is a change from point A to a point such as ________
A) point B
B) point C
C) point D
D) point E
C
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Because of the significant snow fall in the plains this year, the supply of fertilizer to Washington State's apple farmers substantially decreased. As a result, the price of fertilizer has increased in Washington State. This statement indicates the
A. amount of apples that will be available at various prices will decline. B. price of apples will decrease. C. demand for apples will necessarily decrease. D. supply for apples will necessarily increase.
Contractionary monetary policy causes ________
A) real output to rise B) the aggregate price level to fall C) the aggregate price level to rise D) real interest rates to fall
The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________
A) population; production B) population; income C) population; GDP per capita D) production; population
When the Fed issues currency
A. this increases our money supply only if it replaces old, worn-out currency. B. this increases our money supply only if it is used to accommodate the public's desire to hold more currency. C. this increases our money supply either if it replaces old, worn currency, or if it is used to accommodate the public's desire to hold more currency. D. this does not increase our money supply.