Suppose we were analyzing the Turkish lira per euro foreign exchange market. If The Euro-Area's tax level falls relative to Turkey and nothing else changes, then the:
a. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing an appreciation of the euro.
b. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro.
c. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro.
d. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market rises, causing an appreciation of the euro.
e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
.D
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All of the following are part of fiscal policy EXCEPT
A) setting tax rates. B) setting government spending. C) choosing the size of the government deficit. D) controlling the money supply
Economic surplus
A) is equal to the difference between consumer surplus and producer surplus. B) is equal to the sum of consumer surplus and producer surplus. C) does not exist when a competitive market is in equilibrium. D) is the difference between quantity demanded and quantity supplied when the market price for a product is greater than the equilibrium price.
People's best guesses about returns on assets are called
A) expected returns. B) liquidity. C) risk. D) the term structure of returns.
Gross domestic product (GDP) is
a. the total value of all goods and services produced for the marketplace during a given period, within a nation's borders b. the total value of all final goods and services produced for the marketplace during a given period, by a nation's citizens and businesses, both within a nation's borders and abroad c. the total value of all final goods and services produced for the marketplace during a given period, within a nation's borders d. the total value of all goods and services produced for the marketplace during a given period, by a nation's citizens and businesses e. the total value of all goods, services and inputs produced for the marketplace during a given period, within a nation's borders