An appreciation of the U.S. dollar makes foreign goods cheaper relative to American goods, resulting in a ________ in net exports in the U.S. and a ________ shift of the IS curve in the U.S., everything else held constant
A) fall; leftward
B) rise; leftward
C) fall; rightward
D) rise; rightward
A
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Money and income are used interchangeably by noneconomists but mean different things.
Answer the following statement true (T) or false (F)
At tax rates higher than the tax rate that maximizes tax revenues along a Laffer curve
A) an increase in tax rates increases tax revenues. B) any variation in tax rates has no effect on tax revenues. C) a reduction in tax rates increases tax revenues. D) a reduction in tax rates reduces tax revenues.
Because of the greater flexibility that firms have in the long run, all short-run cost curves lie on or above the long-run curve
a. True b. False Indicate whether the statement is true or false
Which of the following events will cause the interest rate to increase?
A) an open market sale of bonds B) an increase in the reserve deposit ratio (i.e., ?) C) an increase in income D) all of the above