Expansionary monetary policy causes the exchange rate to depreciate.
Answer the following statement true (T) or false (F)
True
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If taxes are cut, there is
A) an increase in aggregate demand and the AD curve shifts rightward. B) a decrease in aggregate demand and the AD curve shifts leftward. C) an increase in the quantity of real GDP demanded and a movement up along the AD curve. D) a decrease in the quantity of real GDP demanded and a movement down along the AD curve. E) no change in aggregate demand, only a change in potential GDP.
Which of the following is true regarding the policy positions of George H.W. Bush and Bill Clinton in the 1992 election?
a. Bush's approach was relatively more active, while Clinton's was relatively more passive. b. Both Bush and Clinton were advocates of a passive approach. c. Bush's approach was relatively more passive, while Clinton's was relatively more active. d. Both Bush and Clinton were advocates of an active approach.
An increase in injections into the economy may lead to:
a) An outward shift of aggregate demand and demand-pull inflation b) An outward shift of aggregate demand and cost-push inflation c) An outward shift of aggregate supply and demand-pull inflation d) An outward shift of aggregate supply and cost-push inflation
If the market supply curve does not capture all of the costs to society of producing an additional unit of good, then:
A. the allocation of resources will be efficient. B. the market equilibrium will be socially optimal. C. the market equilibrium will not be efficient. D. the market will not be in equilibrium.