Refer to the following graphs. If aggregate expenditures is equal to consumption plus investment expenditures then the equilibrium level of real income will exist at
a. Y1.
b. Y2.
c. Y3.
d. Y4.
c. Y3.
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The values of real GDP and real GNP are almost the same for the United States
Indicate whether the statement is true or false
Suppose that at first the price of a bag of coffee is ?$15 and the price of a box of tea is ?$9. ?Then, the price of a bag of coffee changes to ?$30 and the price of a box of tea changes to ?$21. What has happened the money prices and relative prices of these two? goods?
What will be an ideal response?
Which of the following statements is incorrect?
A. Any central bank policy that influences the domestic interest rate will affect the exchange rate. B. A foreign exchange intervention affects the value of a country's currency by changing domestic interest rates. C. Higher U.S. interest rates would likely result in an appreciation of the U.S. dollar. D. Sterilized changes in foreign exchange reserves alter a country's monetary base.
The internationalization of our economy has
A. made macropolicy more important. B. made macropolicy less important. C. had little effect on the importance of macropolicy.