In the foreign exchange market, an increase in the supply of dollars could be the result of
A) an increase in the expected future exchange rate.
B) a decrease in the U.S. interest rate differential.
C) a decrease in the exchange rate.
D) an increase in the exchange rate.
E) an increase in the U.S. interest rate differential.
B
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What was the name of the plan, enacted in 2011, in which the Fed bought $400 billion worth of long-term securities while selling $400 billion worth of short-term securities?
A) Operation Go Long B) Operation Twist C) QE2 D) QE3
Full employment is considered a major economic goal because: a. specialization is not possible without full employment
b. economic growth can only occur when there is full employment. c. the opportunity cost of unemployment is lost production. d. profit maximization of firms can only occur when there is full employment. e. inflation will be lower when full employment is achieved.
U.S. imports of sugar
a. have been illegal since the mid-1980s b. harm U.S. sugar producers c. increase the U.S. government's revenue d. are restricted by tariffs e. are restricted by import quotas
If the Japanese economy is currently suffering from a recession we should expect U.S. exports to Japan to
a. decrease. b. increase. c. remain the same. d. increase only if the Japanese Yen depreciates.