If the exchange rate changes from 1 euro per U.S. dollar to 1.2 euros per U.S. dollar, the Euro has
a. appreciated, since its value has increased.
b. appreciated, since the price of U.S. dollars has increased.
c. appreciated, making U.S. goods cheaper in Euros.
d. depreciated, since its value has declined.
e. depreciated, since its value has increased.
D
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According to this Application, which of the following is NOT a strategy that the government can pursue to address the rising cost of federal retirement and health care programs?
A) increase the age at which retirement benefits begin to be paid B) promote government saving and investment to increase real GDP over time C) borrow from the public to finance the programs D) reform the health care system to encourage more competition to reduce health care expenditures
Compared with a U.S. Treasury note, a corporate bond is likely to have a
A) wider bid-asked spread. B) narrower bid-asked spread. C) higher bid price. D) higher asked price.
The performance of diversified companies
A) is always greater than the performance of more narrowly focused firms. B) can be seen in greater economic profits. C) usually is greater than the overall economy. D) often simply mirrors the general economy.
When the MPC = 0.6, the multiplier is
A) 0.40. B) 2.50. C) 1.67. D) 6.00.