Under a floating exchange-rate regime, following an expansion in the money supply, the change in the value of domestic currency is most likely to
A. lower real domestic product.
B. increase demand for exports.
C. increase demand for imports.
D. initiate foreign capital inflow.
Answer: B
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In the figure above, the dark triangle is the
A) consumer surplus. B) deadweight loss. C) producer surplus. D) total cost. E) economic profit.
When competing firms set prices with attention to the prices set by their competitors, the demand curve faced by each firm
A) becomes indeterminate. B) becomes less elastic. C) becomes more elastic. D) shifts toward the northeast. E) shifts toward the southwest.
Why may potential savings in a developing economy be greater than they appear? How can poor people be encouraged to save through financial institutions?
What will be an ideal response?
Keynes believed that
a. perceived that declines in real wages caused by price-level increases would be resisted by labor, whereas an equivalent fall in the real wage from a money wage cut would be accepted. b. perceived that declines in real wages caused by price-level increases would be more readily accepted by labor than an equivalent fall in the real wage from a money wage cut. c. workers preferred employment stability to wage stability. d. would always be acceptable to labor. e. both b and c.