In the short run, a country's exchange rate is determined by:
A. supply and demand.
B. monetary policy.
C. purchasing power parity.
D. the domestic inflation rate.
Answer: A
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The government's main statistic for forecasting business cycles is the index of coincident indicators
a. True b. False Indicate whether the statement is true or false
Give the basic symbolic equations for the mainstream view of the economy. Identify each symbol in the equation with a brief explanation. Using this equation, what is one major explanation for instability in the economy from a mainstream perspective?
What will be an ideal response?
Perfectly elastic demand has an elasticity value of zero.
Answer the following statement true (T) or false (F)
Which of the following shifts the aggregate demand curve rightward?
A) a decrease in government expenditure B) expectations that future incomes will fall C) a decrease in the quantity of money and an increase in interest rates D) a tax cut