Refer to Figure 19-5. Suppose the pegged exchange rate is $0.11/yuan. Because of safety concerns and numerous product recalls, U.S. consumers lower their demand for Chinese products. Using the figure above, this would
A) decrease the shortage of Chinese yuan. B) decrease the surplus of Chinese yuan.
C) increase the surplus of Chinese yuan. D) increase the shortage of Chinese yuan.
A
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Which of the following decreases the demand for loanable funds and shifts the demand for loanable funds curve leftward?
A) The real interest rate rises. B) The economy experiences a recession. C) Wealth decreases. D) Technology that increases productivity is introduced. E) An economy experiences a rapid increase in population.
Refer to Figure 17-1. What should the Federal Reserve do if it wants to move from point A to point C in the short-run Phillips curve depicted in the figure above?
A) raise taxes B) raise the discount rate C) buy treasury bills D) sell treasury bills E) decrease the money supply
The price of imported oil rises. If the government wanted to stabilize output, which of the following could it do?
a. increase government expenditures or increase the money supply b. increase government expenditures or decrease the money supply c. decrease government expenditures or increase the money supply d. decrease government expenditures or decrease the money supply
During the U.S. Civil War the Confederate government had to resort to printing currency to obtain the goods they needed. Comment on what you think happened to both prices and the value of this currency at the end of the war.
What will be an ideal response?