What impact does a decrease in the price level in the United States have on net exports and why?
A) A decrease in the price level reduces net exports because lower prices increase American spending on imports.
B) A decrease in the price level increases net exports because lower prices increase the value of the dollar.
C) A decrease in the price level reduces net exports because lower prices raise the value of the dollar.
D) A decrease in the price level increases net exports by reducing the relative cost of American goods.
D
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A monetarist economist believes that if the economy was left alone, it would rarely operate at full employment
Indicate whether the statement is true or false
Complete crowding out occurs when
A) monetary policy has no effect on income. B) fiscal policy has no effect on income. C) monetary policy has no effect on interest rates. D) fiscal policy has no effect on interest rates.
The international bank deposit and loan market is called the
A) International Banking Facilities. B) Eurocurrency market. C) Foreign exchange market. D) IMF loans and deposits.
In 1960, the most developed economies had _______ the GDP per capita of the poorest economies.
a. 2.4 times b. 4.2 times c. 3.4 times d. 5.4 times