An indirect effect of monetary policy is that as the money supply
A) increases, interest rates fall, and borrowing and spending increase.
B) increases, interest rates rise, and borrowing and spending decrease.
C) decreases, interest rates rise, and borrowing and spending increase.
D) decreases, interest rates fall, and borrowing and spending increase.
A
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The size of the labor force in a country is equal to the:
A) number of unemployed workers in the country. B) number of employed workers plus the number of unemployed workers in the country. C) number of employed workers in the country. D) number of employed workers minus the number of unemployed workers in the country.
We can be sure that the equilibrium price will fall when: a. supply and demand both increase
b. supply and demand both decrease. c. supply increases and demand decreases. d. supply decreases and demand increases.
The height of the demand curve at any quantity indicates
a. total expenditure on the good or service b. total revenue to the seller of the good or service c. whether the price is fair or not d. how much that particular unit is worth to the person who buys it e. how much the person who buys that unit actually pays for it
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If there is the expectation that the Swiss franc will rise in value in the near future, then in the spot market:
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.