Capital goods are typically purchased to ________. They get included in GDP ________
A) replace raw materials; in the year they are produced
B) enable the investor to produce other goods and services; in each year they are utilized
C) enable the investor to consume less in the current period; as they are used up in the stages of production
D) enable the investor to produce other goods and services; in the year they are produced
E) none of the above
D
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South Korea, Indonesia, Malaysia, and Thailand all pegged their currencies to the dollar at one point in time
Because some of these currencies were overvalued at the pegged rate, speculators anticipated these countries would abandon the peg and speculators began selling those currencies. Explain how this speculation would affect the ability of a country to maintain a pegged exchange rate.
If the demand for money decreases, but the Fed keeps the money supply the same:
a. nominal interest rates will rise and aggregate demand will fall. b. nominal interest rates will rise and aggregate demand will rise. c. nominal interest rates will fall and aggregate demand will fall. d. nominal interest rates will fall and aggregate demand will rise.
A duty of economists at the Department of Labor is to
a. analyze data on workers. b. schedule federal holidays. c. enforce the nation's antitrust laws. d. All of the above are correct.
Which of the following statements best describes the relationship between exchange rates and aggregate demand for U.S. output?
A. The exchange rate has no effect on aggregate demand. B. A high exchange rate for the dollar tends to increase aggregate demand, and a low rate tends to reduce it. C. Aggregate demand for U.S. output increases as the exchange rate increases. D. A high exchange rate for the dollar tends to reduce aggregate demand, and a low rate tends to increase it.