Can the U.S. dollar and the euro both appreciate relative to each other?
a. Yes, both countries can gain in this manner
b. Yes, provided the central banks agree to permit it.
c. No, if one currency appreciates relative to another, the other depreciates.
d. No, the citizens of the countries would not agree to it.
c
You might also like to view...
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
An art museum decides to offer tours by having visitors listen to cassette tapes rather than have tour guides. The museum is answering the ________ part of one of the two big economic questions
A) "scarcity" B) "what" C) "why" D) "how"
If official poverty statistics for the United States included transfer payments individuals receive from the government, such as Social Security payments and other non-cash benefits such as food stamps
A) the poverty rate would be lower. B) income inequality would be greater. C) the poverty rate would be overstated. D) poverty would be eliminated.
The increased entry of women and young people into the U.S. labor force from 1960–1980 led to
a. increased unemployment. b. reduced unemployment. c. a more experienced workforce. d. a more effective monetary policy.