If interest rates in the U.S. are higher than elsewhere, it will cause
a. the demand for dollars to decrease
b. the supply of dollars to increase
c. the exchange value of the dollar in relation to other currencies to fall
d. the dollar to depreciate
e. the demand for dollars to increase
E
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The country with the lowest degree of central bank independence in the period 1973-88 was ________
A) Germany B) Japan C) The United States D) Spain
Which of the following is not an example of a failure of market outcome?
A. A person with a gun offers you your life for your money. B. Emission of pollutants is producing acid rain and killing wildlife. C. Addicts continue to use heroin even though they would be better off without it. D. Income is not distributed in a way society wants.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
A. appreciate the dollar and decrease the price of gold. B. depreciate the dollar and increase the price of gold. C. depreciate the dollar and decrease the price of gold. D. appreciate the dollar and increase the price of gold.