Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 120 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A) Buy more Japanese goods.
B) Buy U.S. dollars.
C) Sell U.S. dollars.
D) Encourage U.S. investments abroad.
Answer: B
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What is the real GDP after four years if Country X's average annual growth rate is 8.6 percent and the initial real GDP was $2,756.0 million?
A) $2,993.0 million B) $3,833.5 million C) $1,077.5 million D) $3,250.4 million
Which of the following statements is true?
A) Unlike monetary policy, fiscal policy is not subject to lags. B) Like monetary policy, fiscal policy is also subject to the same types of lags. C) In general, fiscal policy lags are much shorter than monetary policy lags. D) Although both monetary and fiscal policies are subject to lags, fiscal policy lags are easier to eliminate.
When economists say the quantity supplied of a product has decreased, they mean the
a. supply curve has shifted to the left. b. supply curve has shifted to the right. c. price of the product has risen, and consequently, suppliers are producing more of it. d. price of the product has fallen, and consequently, suppliers are producing less of it.
Compensating wage differentials explain some income differences.
Answer the following statement true (T) or false (F)