Suddenly large number of tourists from Brazil start coming to Florida. What will this do to the U.S. exchange rate between the U.S. dollar and the Brazilian peso?
a. The U.S. dollar’s exchange rate will appreciate.
b. The U.S. dollar’s exchange rate will depreciate.
c. The Brazilian peso will appreciate.
d. The exchange rates will not change.
a. The U.S. dollar’s exchange rate will appreciate.
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Initially, the reserve ratio is 10 percent. Now banks decide they want an additional 10 percent of deposits as reserves. There are no currency drains. If the Fed buys $1 million of U.S. government securities, the money supply will
A) not change because of the excess reserves banks keep on hand. B) increase by $1 million. C) increase by $5 million. D) increase by $10 million.
Which of the following is most likely to cause the long-run aggregate supply curve to shift rightward?
a. A rise in energy prices b. A drop in the actual price level c. An increase in the demand for leisure hours d. An increase in the level of investment spending that is less than the depreciation of the capital stock e. A technological breakthrough with widespread practical applications
Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue?
a. "Central Bank Raises Interest Rates" b. "Auto Dealership to Cut Prices" c. "Fanny's Freeze Dried Prunes to Lay Off 50 Workers" d. "United Workers Union to Strike April 15" e. "Brazilian Coffee Bean Crop Falls by 10 Percent"
Which of the following is not included in a nation's balance of payments?
a. International interest and dividend earnings. b. Total holdings of the central bank's international reserves. c. Financial service sales by domestic banks to foreign customers. d. All of the above are included in the balance of payments.