Question If the Fed buys U.S. Treasury securities, then the money supply increases, the interest rate falls, and the quantity of money demanded increases falls, the interest rate falls, and the quantity of money demanded increases increases, the interest rate increases, and the quantity of money demanded increases falls, the interest rate increases, and the […]
Question <pre class=”ql-syntax”>Which <span class=”hljs-keyword”>of</span> the following statements <span class=”hljs-keyword”>is</span> correct <span class=”hljs-keyword”>for</span> an open economy with a trade deficit? The trade deficit must be offset <span class=”hljs-keyword”>by</span> a positive net capital outflow. The trade deficit cannot last <span class=”hljs-keyword”>for</span> very many years. None <span class=”hljs-keyword”>of</span> the above answers <span class=”hljs-keyword”>is</span> correct. The trade deficit […]
Question In the open economy macroeconomic model, the amount of dollars demanded in the market for foreign-currency exchange at a given real exchange rate increases if either U.S. imports or exports increase. either U.S. imports or exports decrease. either U.S. imports increase or U.S. exports decrease. either U.S. imports decrease or U.S. exports increase. […]
Question If the dollar appreciates, how will aggregate demand in the United States be affected? />Aggregate demand will shift to the right as exports increase.Aggregate demand will shift to the right as imports increase.Aggregate demand will shift to the left as imports increase.Aggregate demand will shift to the left as exports increase. Looking for […]
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