If the U.S. dollar appreciates in the foreign exchange market,
a. American goods will become more expensive for foreign buyers and foreign goods will be cheaper for Americans.
b. American goods will become less expensive for foreign buyers and foreign goods will be more expensive for Americans.
c. American goods will become more expensive for foreign buyers and foreign goods will be more expensive for Americans.
d. American goods will become cheaper for foreign buyers and foreign goods will be cheaper for Americans.
e. neither the price of U.S. exports nor the price of U.S. imports will change.
A
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?Recently, there has been an increase in the market demand for products of firms in manufacturing industries. The production of many of these products requires the skills of welders. Because welding is a dirty and dangerous job compared with other? occupations, in recent years fewer people have sought employment as welders.
Middlemen:
a. increase transaction costs. b. increase the price of goods, services and resources without providing any benefits. c. impede trade and hinder economic growth. d. reduce transaction costs.
A set of combinations of nominal interest rates and GDP, for which the demand for money is equal to the supply of money, is the:
A) IS curve. B) aggregate expenditure line. C) supply curve. D) LM curve.
The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would reinforce each other to achieve that objective?
a. Selling government securities and raising the discount rate b. Selling government securities and lowering the discount rate c. Buying government securities and lowering the discount rate d. Buying government securities and raising the reserve ratio