When an established domestic industry is in jeopardy of being displaced by lower-priced imports, then there could be a rationale for encouraging imports
Indicate whether the statement is true or false
false
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All else equal, if U.S. stocks are perceived to have become riskier compared to financial investments in other countries, then the market equilibrium value of the exchange rate for the U.S. dollar will:
A. fall. B. become fixed. C. be equal to the value chosen by the Federal Reserve. D. rise.
The export supply curve is the portion of the domestic supply curve below the no-trade equilibrium price
a. True b. False Indicate whether the statement is true or false
Which of the following is not true about the composition of GDP in 2016?
A) The majority of consumer spending is on durable goods. B) Purchases made by state and local governments are greater than purchases made by the federal government. C) Imports are greater than exports. D) Business fixed investment is the largest component of investment.
Calculate the real money supply growth rate when the nominal money supply increases by 10% and the price level increases by each of the following percentages: a) 2%; b) 8%; c) 10%; d) 15%
What will be an ideal response?