The logic of the exchange-rate effect begins with a change in the price level changing the interest rate

a. True
b. False
Indicate whether the statement is true or false


True

Economics

You might also like to view...

Which of the following does not describe a characteristic of short-term economic fluctuations?

A. Expansions and recessions are irregular in length and severity. B. Durable-goods industries are less sensitive to short-term fluctuations than service and non-durable industries. C. Expansions and recessions are felt throughout the economy. D. The unemployment rate rises during recessions.

Economics

Refer to Scenario 5.9. Given that the probability of a positive faculty response is 75%, Torrid Texts' expected profit under complete information would be

A) $23.25 million. B) $45 million. C) $45.25 million. D) $45.75 million. E) $60 million.

Economics

The substitution by consumers of one good for another because of relative price changes is:

A. captured by the CPI and causes the CPI to underestimate the cost-of-living changes. B. captured by the CPI and causes the CPI to overestimate the cost-of-living changes. C. not captured by the CPI and causes the CPI to underestimate the cost-of-living changes. D. not captured by the CPI and causes the CPI to overestimate the cost-of-living changes.

Economics

Fiat money is:

A. money created by rule. B. money used for the exchange of large commodities. C. any form of money that is more readily accepted than commodity-backed money. D. any form of money that can be legally exchanged into a fixed amount of an underlying commodity.

Economics