Many economists argue that the sharp reduction in U.S. net exports in the mid 1980s was due to
A) expansionary U.S. monetary policy.
B) contractionary U.S. monetary policy.
C) expansionary U.S. fiscal policy.
D) contractionary U.S. fiscal policy.
C
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In the foreign exchange market, how does a change in expected future U.S. exchange rate affect the supply of dollars?
What will be an ideal response?
The above figure shows the reaction functions for two pizza shops in a small isolated town. The Stackelberg leader will produce
A) 25 pizzas. B) 50 pizzas. C) 66.7 pizzas. D) 100 pizzas.
Fiscal policy moved toward expansion during the 1980s but toward restriction during the 1990s. How did these differences affect the economy?
a. The expansionary fiscal policy of the 1980s led to strong growth while the restrictive policy of the 1990s led to stagnation. b. The expansionary fiscal policy of the 1980s led to weaker growth than the restrictive policy of the 1990s. c. The expansionary fiscal policy of the 1980s generated more rapid growth than the restrictive policy of the 1990s. d. There is little evidence that the differences in fiscal policy between the two decades exerted much impact on either aggregate demand or real output.
The European Central Bank's equivalent of the Fed's open market operations (OMO) is:
A. very similar to the Fed's OMO in that they are highly centralized. B. dissimilar to the Fed's OMO because fewer banks participate in the auctions of the securities. C. similar to the Fed's OMO in that they accept only U.S. Treasury securities in their refinancing operations. D. dissimilar to the Fed's OMO in that the operations are conducted at all 19 of the National Central Banks simultaneously.