An increase in U.S. income relative to other countries' incomes will
a. decrease the supply of dollars on the foreign exchange market
b. increase the demand for dollars on the foreign exchange market
c. decrease the demand for dollars on the foreign exchange market
d. increase the supply of dollars on the foreign exchange market
e. increase the price of exports
D
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Fixed prices in a free-market economy can increase efficiency.
Answer the following statement true (T) or false (F)
Discount lending by the Fed:
A. amounts to five billion dollars in volume during an average week. B. is usually small except in times of crisis. C. is more important today than in years past. D. is the key component of monetary policy.
All of the following statements are true except
A. Until 1971 the United States had run a trade surplus virtually every year of the 20th century. B. The U.S. ran relatively small trade deficits through most of the 19th century. C. The U.S. was the only industrial power to raise tariffs during the 1930s. D. World trade in the 1930s dwindled to a fraction of what it had been in the 1920s.
If the equation for the quantity theory of money is looked on as a demand-for-money equation, then the demand for money depends on
A. nominal income and the interest rate. B. real income but not on the interest rate. C. real income and the interest rate. D. nominal income but not on the interest rate.