For a major country with extensive capital flows, what is the effect of an increase in interest rates?
a. a currency depreciation and increased net exports
b. a currency depreciation and reduced net exports
c. a currency appreciation and increased net exports
d. a currency appreciation and reduced net exports
d
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The Mint Act of 1792, following the ideas of Thomas Jefferson and Robert Morris, set the U.S. up as
(a) a silver standard country. (b) a paper-money country. (c) a gold-standard country. (d) a bimetallic country.
Given the information in Figure 14.4, the bilateral monopoly wage rate is:
A) W1. B) W2. C) W3. D) W4. E) Any of the above.
Consider an unregulated monopoly in Figure 13.2. The firm's profit at the profit maximizing output level is:
A. $600,000. B. $400,000. C. $200,000 D. $0.
If one of the specific goals that central bankers focus on is economic growth, should they aim for the highest short-term growth rate the economy can achieve? Explain.
What will be an ideal response?