As U.S. real GDP rises, wealthier households may decide to buy ________ foreign goods and assets, which would cause a(n) ________ of the U.S. dollar.
A. more; appreciation
B. fewer; appreciation
C. more; depreciation
D. fewer; depreciation
Answer: C
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Why does the supply curve of Japanese yen slope up?
What will be an ideal response?
When policy makers are constantly shifting back and forth between expansionary and restrictive monetary policy, this is most likely to
A) keep the general level of prices relatively stable because the periods of restrictive policy will just offset the periods of expansion. B) help promote economic stability because changes in monetary policy can be counted on to exert a predictable impact on the economy quickly. C) promote economic stability and stimulate employment. D) promote instability because the time lags of monetary policy are long and unpredictable.
Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in demand, the equilibrium quantity of drugs:
A. will increase. B. will decrease. C. will not change. D. may or may not change.
We assume that in the long run in a perfectly competitive market:
A. the firms can enter or exit. B. the number of firms is fixed. C. the price will be constant. D. collusion will set in without government regulation.