Homework Answers
Under standard assumption, in the short run, currency devaluation causes a country's output to rise. As because of currency devaluation there will be inflation. export will be cheaper and import will be more expensive. Therefore the aggregate demand will rise which will lead to increase in the output of the country
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Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise....
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise....
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged. If investors believe a country's currency is fixed at an overvalued level, the central bank's supply of foreign reserves will most likely be rising falling. remaining unchanged.
7,8 Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes...
7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. O remain unchanged. QUESTION 8 Which type of global exchange rate regime creates an asymmetry, with only one country able to conduct independent monetary policy? Floating exchange rates Gold standard Managed float Reserve currency system QUESTION 9 then country A's currency will be
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
A short-run increase in government spending causes the currency to ______ and output to ______.
A short-run increase in government spending causes the currency to ______ and output to ______.
In the short-run an increase in the costs of production makes A. output and prices rise....
In the short-run an increase in the costs of production makes A. output and prices rise. B. output rise and prices fall. C. output fall and prices rise. D. output and prices fall.
(22) In the short run, contractionary monetary policy causes output to _______________ and prices to _______________....
(22)
In the short run, contractionary monetary policy causes output
to _______________ and prices to _______________.
rise; rise
rise; fall
fall; rise
fall; fall
(23)
As the graph illustrates, consumers are worried about the
future and have begun saving more money. If the Fed does
not intervene in this situation, what will happen
to the price level in the long run?
Prices will increase.
Prices will stay the
same.
Prices will decrease.
There is insufficient
information to...
QUESTION 20 and output will In the short run, if the central bank decreases the money...
QUESTION 20 and output will In the short run, if the central bank decreases the money supply, the currency will O A. appreciate; rise B. depreciate; fall OC. appreciate; fall D. depreciate; rise Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro Search or type URL
17 18 QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run...
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
In the short run a currency depreciation can make a trade balance worse if a. there...
In the short run a currency depreciation can make a trade balance worse if a. there is no domestic producer of an import. b. there is no export market for a country's output. c. there is no domestic buyer for an import. d. none of the options.
An increase in the money supply causes output to rise in the long run. Group of...
An increase in the money supply causes output to rise in the long run. Group of answer choices True False
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged. If investors believe a country's currency is fixed at an overvalued level, the central bank's supply of foreign reserves will most likely be rising falling. remaining unchanged.
7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. O remain unchanged. QUESTION 8 Which type of global exchange rate regime creates an asymmetry, with only one country able to conduct independent monetary policy? Floating exchange rates Gold standard Managed float Reserve currency system QUESTION 9 then country A's currency will be
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
(22)
In the short run, contractionary monetary policy causes output
to _______________ and prices to _______________.
rise; rise
rise; fall
fall; rise
fall; fall
(23)
As the graph illustrates, consumers are worried about the
future and have begun saving more money. If the Fed does
not intervene in this situation, what will happen
to the price level in the long run?
Prices will increase.
Prices will stay the
same.
Prices will decrease.
There is insufficient
information to...
QUESTION 20 and output will In the short run, if the central bank decreases the money supply, the currency will O A. appreciate; rise B. depreciate; fall OC. appreciate; fall D. depreciate; rise Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro Search or type URL
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
In the short run a currency depreciation can make a trade balance worse if a. there is no domestic producer of an import. b. there is no export market for a country's output. c. there is no domestic buyer for an import. d. none of the options.
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