If income is rising faster in Japan than in the United States, there will be an increase in the demand for the yen and a decrease in the demand for the dollar.
Answer the following statement true (T) or false (F)
False
If income in Japan rises faster than in the United States, Japan will purchase more American goods and this will increase the demand for the dollar, causing it to appreciate and the yen to depreciate.
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
High real interest rates
A. increase the demand for the domestic currency by foreigners. B. cause decreased job opportunity. C. cause worker productivity to decrease. D. crowd out interest-sensitive expenditures.
Suppose that the state of California imposes a minimum wage of $7 per hour. In the entry-level labor market in California fast-food restaurants, the quantity of labor demanded at $7 per hour is 800 thousand, and the quantity of labor supplied is 1.2 million. Which of the following is true?
a. There is a shortage of 800 thousand workers in the labor market. b. There is a shortage of 400 thousand workers in the labor market. c. There is a surplus of 400 thousand workers in the labor market. d. There is a surplus of 1.2 million workers in the labor market.
If we were on curve J, the lowest three quintiles received about _____% of income.
A. 20
B. 40
C. 50
D. 60