If Japan adopts an expansionary monetary policy, U.S. exports are likely to increase.
Answer the following statement true (T) or false (F)
True
Japan's expansionary monetary policy raises Japanese income and the Japanese price level, causing demand for U.S. exports to increase.
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Why do futures have lower information costs and higher liquidity than forward contracts?
What will be an ideal response?
According to the text, Israelis living on a kibbutz in Israel
a. leave the economic decisions to the economists on the kibbutz b. are adverse to profit-maximizing behavior c. shifted from manufacturing to farming in the 1960s d. behave according to the MC = MR rule e. act communally so do not let prices affect their decisions
At the point where the demand and supply curves intersect:
A. the market is in disequilibrium. B. there is neither a surplus nor a shortage of the product. C. the buying and selling decisions of consumers and producers are inconsistent with one another. D. quantity demanded exceeds quantity supplied.
How does the new classical theory of fiscal policy differ from crowding-out model?