An increase in the U.S. money supply would cause the value of the dollar to ________ and U.S. net exports to ________ in the short run using a Keynesian model
A) fall; fall
B) fall; rise
C) rise; rise
D) rise; fall
A
You might also like to view...
How did the Troubled Asset Relief Program (TARP) help the banks in the U.S. during the financial crisis of 2007-2009?
What will be an ideal response?
If the population is split up into quintiles by income, the bottom quintile would include:
A. the poorest half of the population. B. the poorest 60 percent of the population. C. the richest half of the population. D. the poorest 20 percent of the population.
The minimum efficient scale is the level of output where the short-run average-total-cost curve reaches its minimum point
a. True b. False Indicate whether the statement is true or false
Suppose that the Fed decides to decrease the growth rate of the money supply in the United States. What is most likely to happen to the U.S. trade deficit and to GDP?
A. The trade deficit will fall; GDP will fall. B. The trade deficit will rise; GDP will rise. C. The trade deficit will fall; GDP will rise. D. The trade deficit will rise; GDP will fall.