The ________ approach to exchange rates emphasizes the importance of the supply and demand for money as a key to understanding the determinants of exchange rates.

A. monetary
B. asset market
C. balance of payments
D. purchasing power parity


Answer: A

Economics

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Ceteris paribus, a downward shift in the net exports function will cause:

a. equilibrium real GDP to decrease. b. equilibrium real GDP to increase. c. savings to decrease. d. net exports to increase. e. government budget deficit to decline.

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The price of one good produced by a multiproduct industry rises. For another good produced by that industry

a. the supply curve will shift to the left. b. the supply curve will remain constant. c. the supply curve will shift to the right. d. the demand curve will shift to the right.

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The federal funds market is the market where

a. the federal government raises funds to cover its budget deficit. b. the Federal Reserve System makes loans to commercial banks. c. commercial banks with excess reserves make loans to commercial banks seeking reserves. d. commercial banks make loans to the Federal Reserve.

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In recent years, the Chinese government has _____________ bonds issued by the U.S. government which has _____________ interest rates in the United States beyond what they would have been otherwise

A) bought; lowered B) bought; raised C) sold; lowered D) sold; raised

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