Which of the following groups would be aided by a depreciation of the American dollar?
A. Foreign workers.
B. U.S. importers of goods from abroad.
C. American producers of goods for export.
D. Foreign producers of goods imported by the United States.
Answer: C
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Government policies that increase the long-term economic growth rate by a small amount result in ________ in average living standards.
A. no change B. small increases C. large increases D. small decreases
The purchase of Treasury securities by the Federal Reserve will, in general,
A) increase the quantity of reserves held by banks. B) decrease the quantity of reserves held by banks. C) not change the money supply. D) not change the quantity of reserves held by banks.
Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A. real GDP will be Y2, and the price level will be P2. B. real GDP will be between Y1 and Y2, and the price level will be below P2. C. real GDP will be Y1, and the price level will be P1. D. real GDP will be between Y1 and Y2, and the price level will be above P1.
An important problem with the gold standard was that
A. exchange rates tended to fluctuate a great deal, making it difficult for businesses to make long-run plans. B. a country did not have control of its domestic monetary policy. C. one country could easily manipulate the system to its advantage and the disadvantage of other countries. D. it was too complicated and restricted business activity.