Under a system of flexible exchange rates, which of the following would be most likely to cause a nation's currency to appreciate on the foreign exchange market?
a. stable domestic prices while the nation's trading partners are experiencing inflation
b. a decrease in domestic interest rates
c. an increase in foreign interest rates
d. a domestic inflation rate of 10 percent while the nation's trading partners are experiencing stable prices
A
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According to the classical economists,
A. the interest rate will ensure that the amount households plan to save will equal the amount businesses desire to invest. B. the amount households plan to save is determined primarily by their wage. C. increasing government spending is the most reliable method of restoring full employment. D. unemployment is caused by too little spending.
Term limits on political offices have all of the following properties except:
A. prevent officials from holding office for longer than a certain amount of time. B. discourage corruption by ensuring that one person isn't allowed to hold onto power for too long. C. can encourage corruption in reality by placing an official in power with no incentive to answer to his constituency. D. encourage people to run for multiple different political offices.
Expansionary fiscal policy, other things being equal, will tend to: a. increase interest rates. b. increase investment
c. increase net exports. d. all of the above
By law, employers in the United States may not ask prospective female employees whether they plan to have babies. The existence of this law seems most likely to
A. increase the probability that firms will practice economic discrimination against women. B. decrease the probability that firms will practice economic discrimination against women. C. increase the probability that firms will practice statistical discrimination against women. D. decrease the probability that firms will practice statistical discrimination against women.