Suppose that the European Central Bank enacts expansionary policy. Everything else held constant, this will cause the demand for U.S. assets to ________ and the U.S. dollar to ________
A) increase; appreciate
B) decrease; appreciate
C) increase; depreciate
D) decrease; depreciate
A
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The Goldin and Lewis (1975) study of the costs of the Civil War:
a. finds peaceful abolition of slavery would have been more costly than the War. b. fails to include an estimate for the loss of human capital due to the War. c. estimates the total cost of the War at more than double national income in 1860. d. finds Northern property damage to be a major factor in the War's cost.
If you were to invest $10,000 for two years and the interest rates for each of those years are 4.5% and 4.65% respectively, how much interest would you earn from the end of year one until the end of year two? Assume interest compounds annually.
What will be an ideal response?
Classical economists believed that
A. if saving exceeded investment, prices and interest rates would rise as business accumulated unwanted inventories. B. flexible prices and wages could not restore an economy to full employment if the interest rate were rigid. C. flexible interest rates, wages, and prices would assure full employment. D. voluntary unemployment reflected economic inefficiency.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher