Referring to Figure 19.1, if the exchange rate is currently 14 pesos per dollar, then we expect the dollar to ________ and the peso to ________
A) depreciate; appreciate B) depreciate; depreciate
C) appreciate; appreciate D) appreciate; depreciate
A
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Injections to the economy include consumption, investment, and government spending
a. True b. False Indicate whether the statement is true or false
Assume the central bank decides to lower the bank's reserve requirements. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with supply of real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.
If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much would government spending have to change to generate this increase in real GDP?
A. $140 million. B. $100 million. C. $200 million. D. $400 million.
The current account in the BOP records:
A. all money flowing between countries. B. a nation's yearly exports and imports of goods and services. C. only the transactions involving capital goods in international trade. D. only the transactions involving consumer goods in international trade.