Other things equal, in an open economy, monetary policy to offset an inflationary gap will tend to
a. Lower the exchange value of the dollar and lower net exports.
b. Lower the exchange value of the dollar and raise net exports.
c. Raise the exchange value of the dollar and lower net exports.
d. Raise the exchange value of the dollar and raise net exports.
c
You might also like to view...
Explain how the labor market and the production function determine potential GDP
What will be an ideal response?
In the figure above, when 20 units are produced the marginal cost is
A) less than $8. B) $8. C) more than $8 and less than $16. D) None of the above answers is correct.
Refer to the above figure. The economy initially is at point A. The Fed unexpectedly increases the money supply. Which of the following statements are TRUE?
A) In the short run, the economy will move from point A to point C. In the long run, the economy will move to point B. B) In the short run, the economy will move from point A to point C. In the long run, the economy will move back to point A. C) In the short run, the economy will move from point A to point B. In the long run, the economy will stay at point B. D) In the short run, the economy will move from point A to point B. In the long run, the economy will move back to point A.
One explanation for the growth in the U.S. economy over the last 100 years is:
A. a large increase in human capital. B. Human capital was not the cause of growth in the United States over the last 100 years. C. a rapid decline in human capital. D. a small, incremental increase in human capital.