As the dollar price of a euro falls
A) U.S. residents will purchase fewer French imports.
B) the quantity of euros supplied will increase.
C) French goods will be less expensive to U.S. residents.
D) French residents will increase their purchases of U.S. assets.
C
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
The stock of wealth increases more rapidly the faster the flow of ________.
A. saving B. money C. income D. assets
The figure above shows the market for bank reserves in Futureland. If the Bank of Futureland undertakes an open market sale of government securities that changes the quantity of reserves by $25 billion, then the federal funds rate will
A) remain at 4 percent a year. B) rise to 6 percent a year. C) fall to 4 percent a year. D) change, but more information is needed to determine by how much. E) None of the above answers is correct.
The above table shows some (but not all) national income accounting data for a hypothetical country. According to these data, the value of GDP is ________ billion
A) $2100 B) $1850 C) $2000 D) $2050