Suppose the U.S. dollar weakens against the euro (and against other major currencies). We know with certainty that this weakening of the dollar will cause which of the following to occur?
A) a recessionary gap
B) an inflationary gap
C) a deflationary gap
D) none of the above
D)
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Graphically show a firm earning a profit; shade the appropriate profit rectangle. Explain how the profit formula represented by the rectangle is analogous to TR ? TC.
What will be an ideal response?
Market clearing in the loanable funds market
a. violates Say's Law b. guarantees that total spending will be just sufficient to purchase whatever output is produced c. means that the interest rate never changes d. guarantees that total spending will equal the quantity of loanable funds demanded e. requires that the government run a budget deficit
When Andrew earns no income, his base consumption is $500 . When he earns $3,000 per week, he consumes $2,100 per week and saves the rest. If his weekly income increases by $1,000 . then his total consumption is expected to increase to _____
a. $5,800 b. $3,300 c. $6,900 d. $1,500
A move from E to F represents
A. an increase in quantity demanded.
B. a decrease in quantity demanded.
C. an increase in demand.
D. a decrease in demand.