In the United States, where there is a permanent increase in the money supply, exchange rate overshooting is caused in part by:
a. higher domestic interest rates.
b. an appreciation of the dollar.
c. lower foreign interest rates.
d. a depreciation of the dollar.
Ans: d. a depreciation of the dollar.
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In 2012, the United States had
A) a current account deficit because imports were greater than exports. B) a current account deficit and a capital and financial account deficit. C) a capital and financial account deficit because exports were greater than imports. D) a current account surplus because imports were greater than exports. E) no change in U.S. official reserves.
Which of the following is true about fiscal policy?
What will be an ideal response?
If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?
A. The quantity of beef demanded will decrease. B. The quantity of beef supplied will increase. C. There will be a surplus of beef. D. There will be a shortage of beef.
Restructuring of a major industry resulted from the:
A. U.S. Steel case. B. AT&T case. C. IBM case. D. DuPont cellophane case.