What effect does a contractionary monetary policy in the U.S. have on the foreign trade sector?
A) The higher value of the dollar will decrease imports and increase exports.
B) The higher value of the dollar will decrease exports and increase imports.
C) The lower value of the dollar will decrease imports and increase exports.
D) The lower value of the dollar will decrease exports and increase imports.
B
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According to this Application, from the early 1990s until quite recently, the U.S. economy grew. This growth in the U.S economy
A) decreased foreign investment in the U.S. B) decreased imports to the United States. C) caused the level of U.S. exports to decline. D) increased the U.S. demand for foreign products.
Labor productivity depends on the
a. quality of the labor b. the effectiveness of government c. the proportion of the labor force that is unionized d. the size of the economy e. All of the answers are correct
If the velocity of the M1 money supply is 4 and nominal GDP is $200 billion, the stock of money in circulation must be:
A. $25 billion. B. $50 billion. C. $100 billion. D. $800 billion.
The Obama stimulus plan's requirement that projects be "shovel-ready" was designed to combat
A. The political business cycle. B. The administrative lag. C. The recognition lag. D. The operational lag.