All else equal, an easy money policy in the United States tends to
A. increase American imports.
B. increase the international value of the dollar.
C. reduce the foreign demand for American dollars.
D. increase an existing American trade deficit.
C. reduce the foreign demand for American dollars.
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Which of the following is an example of a good produced under perfect competition?
A) Cars B) Corn C) Bottled water D) Patented software
A decrease in the reserve ratio will
A) cause the money supply to decrease. B) cause the money supply to increase. C) not affect the money supply. D) decrease the money multiplier.
Which of the following is true?
A) Voters have a strong incentive to make well-informed choices when voting in state and federal elections. B) Policies favored by a majority will assure that resources are allocated efficiently. C) The rational ignorance effect indicates that voters have very little incentive to be well informed when making political choices. D) Political action is based on voluntary exchange and mutual agreement.
If the wage rate increases and firms in a perfectly competitive industry are hiring labor, then
A) the firms will quit using labor. B) profits will increase. C) market supply will decrease. D) market price will decrease.