Assume that Japan and South Korea have flexible exchange rates. Other things equal, if economic growth is more rapid in Japan than in South Korea:
A. gold bullion will flow out of Japan.
B. the Japanese yen will depreciate.
C. the South Korean won will depreciate.
D. the yen and won exchange rate will stay constant.
B. the Japanese yen will depreciate.
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The Fed can attempt to decrease the federal funds rate by
A) lowering the reserve requirement, which increases the money supply. B) lowering the reserve requirement, which decreases the money supply. C) raising the reserve requirement, which increases the money supply. D) raising the reserve requirement, which decreases the money supply.
The data in the above figure indicate that the economy will be in a long-run macroeconomic equilibrium at a price level of
A) 140. B) 130. C) 100. D) 120.
A farm worker gets paid today in money, but plans to spend the money next week. This illustrates which function of money?
A) medium of exchange B) standard of deferred payment C) store of value D) unit of account
The government budget surplus equals
A) government purchases plus transfers. B) government receipts minus government outlays. C) government purchases minus net receipts. D) government purchases minus transfers.