In 2005, China increased the price of its currency while continuing to pursue a fixed exchange rate. This change in policy is called
A) an appreciation.
B) a depreciation.
C) a peg.
D) a devaluation.
E) a revaluation.
D
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Governments provide public goods because it has which of the following?
a. The ability to force people to use the public good b. Better information about what types of public goods people want c. The ability to ask all the citizens to help pay for the public good d. The ability to force people to pay taxes to cover the cost of the public good
Unemployment caused by people voluntarily quitting work in order to seek more attractive employment is
a. the natural rate of unemployment b. not considered part of the unemployment c. cyclical unemployment d. frictional unemployment e. structural unemployment
Which of the following would we not expect if government policy moved the economy up along a given short-run Phillips curve?
a. Teresa reads in the newspaper that the central bank recently raised the money supply. b. Jackie gets fewer job offers. c. Miguel makes larger increases in the prices at his health food store. d. Julie's nominal wage increase is larger.
One impact of a rise in the U.S. dollar's value is that
A. U.S. goods will become cheaper overseas. B. exports will increase sharply. C. U.S. goods are cheaper domestically. D. imports become cheaper for the U.S. consumer.