Suppose that at the prevailing yen-dollar exchange rate there is an excess demand for dollars. To stabilize exchange rates, the United States might
A. Reduce government spending.
B. Pursue contractionary monetary policy.
C. Raise interest rates.
D. Lower taxes.
Answer: D
You might also like to view...
The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points A and B is
A) 20. B) 16. C) 2. D) 4. E) nonexistent because at point A, no roses are sold.
Which of the following is most subject to the lemons problem?
A) credence goods B) homogeneous goods C) search goods D) inferior goods
The most a monopolist can sell at any given price is:
A. the amount he alone can supply the market with. B. the amount demanders are willing to buy at that price. C. constrained by the availability of inputs. D. less than if it were a perfectly competitive market.
Cyclical unemployment arises when: a. business activity in the macroeconomy declines
b. the business cycle enters an expansionary phase. c. labor unions strike for higher wages. d. the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.