In foreign exchange markets, the supply of U.S. dollars is determined by all of the following except
A. Foreign demand for American exports.
B. Speculation.
C. American demand for imports.
D. American investments in foreign nations.
Answer: A
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In an open economy with a given level of real interest rates and risk, an increase in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.
A. increase; decrease B. increase; increase C. decrease; increase D. decrease; decrease
The interval between the recognition of a need for a policy change and when the policy change is instituted is called the:
a. recognition lag. b. impact lag. c. policy lag. d. administrative lag.
Andrew is not working, but is available and willing to work after finishing a month-long mission trip for his church. While on his mission, Andrew did not look for work. Andrew is considered
A) unemployed. B) part of the labor force. C) a marginally attached worker. D) a discouraged worker. E) Both answers A and B are correct.
Which of the following was not a major source of economic growth in the 1920s?
a. construction of residential housing b. production of consumer durables c. railroad construction d. automobile production