In practice, many U.S. import prices tend to rise by only around
A) 1/4 of a typical dollar depreciation over the following year.
B) 1/3 of a typical dollar depreciation over the following year.
C) 1/2 of a typical dollar depreciation over the following year.
D) 2/3 of a typical dollar depreciation over the following year.
E) 2/5 of a typical dollar depreciation over the following year.
C
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If a Japanese company sells 200 VCRs to a French company and uses the money to buy U.S. government bonds, the Japanese merchandise trade balance ________, and the Japanese financial account balance ________
A) rises; rises B) rises; falls C) falls; falls D) falls; rises
In 2010 the U.S. government was running a large deficit. Some were concerned that pressures might be put on the Federal Reserve to purchase government bonds to help the government finance this deficit. If the Fed were to buy government bonds to help the government finance its expenditures, then
a. the price level would fall, so the value of money would fall. b. the price level would fall, so the value of money would rise. c. the price level would rise, so the value of money would fall. d. the price level would rise, so the value of money would rise.
If you double input, output more than doubles.
What will be an ideal response?
A tax on suppliers will cause the equilibrium price paid by the consumer to ________ and the equilibrium quantity to ________.
A. increase, increase B. decrease, decrease C. increase, decrease D. decrease, increase