With a floating exchange rate, contractionary monetary policy, as the U.S. pursued in the early 1980s,...
With a floating exchange rate, contractionary monetary policy, as the U.S. pursued in the early 1980s, causes the currency to ____ and output to ____.
A) appreciate; rise
B) appreciate; fall
C) depreciate; rise
D) depreciate; fall
Homework Answers
With a floating exchange rate , contractionary monetary policy, as the U.S pursued in the early 1980s , causes the currency to appreciate and output to rise. Hence,option(A) is correct.
Add Answer to:
With a floating exchange rate, contractionary monetary policy,
as the U.S. pursued in the early 1980s,...
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...
1. Under a floating exchange rate regime with a high degree of capital mobility, in the...
1. Under a floating exchange rate regime with a high degree of capital mobility, in the short run an expansionary fiscal policy will most likely create pressure on: a. the domestic currency to appreciate. b. the domestic currency to depreciate. c. monetary authorities to revalue the domestic currency. d. monetary authorities to devalue the domestic currency. 2. Under a floating exchange rate regime with a high degree of capital mobility, a change in the exchange rate value of domestic currency...
19 20 QUESTION 19 A country with a floating exchange rate faces a short-run recession and...
19 20
QUESTION 19 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? O Only with increasing output O Only with increasing the current account balance O No, not with either goal Yes, with both goals QUESTION 20 and output will In the short run, if the central bank decreases the money supply,...
Contractionary Monetary Policy: A) Using the exchange rate market model, illustrate and explain how the monetary...
Contractionary Monetary Policy: A) Using the exchange rate market model, illustrate and explain how the monetary policy action identified above may affect the exchange rate. Identify the new equilibrium on the diagram as point B. B) Using the IS-LM model, illustrate and explain how the economy and the unemployment rate may be impacted as a result of the change in the exchange rate in part a. Identify the new equilibrium on the diagram as point B.
If the Bank of Canada conducts contractionary monetary policy, which of the following can we expect...
If the Bank of Canada conducts contractionary monetary policy, which of the following can we expect to occur? Check ALL that apply. interest rates on bonds will rise the Canadian dollar will depreciate it value investment spending will fall Canadian exports will rise and imports will fall
15,16 Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization...
15,16
Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization policy during a recession? O Expansionary fiscal policy O Expansionary monetary policy O Contractionary fiscal policy O Contractionary monetary policy QUESTION 16 because it affects a component of aggregate demand. On the DD curve, exchange rate depreciation causes output to A. fall; investment B. fall; the current account o rise; consumption OD. rise; the current account QUESTION 17 shte in tame Inflation. The country's
because it Monetary policy that decreases the interest rate is called A. contractionary monetary policy, reduces...
because it Monetary policy that decreases the interest rate is called A. contractionary monetary policy, reduces AD. B. contractionary monetary policy; reduces SRAS. C. expansionary monetary policy; increases AD. D. expansionary monetary policy; increases SRAS. QUESTION 11 Other things the same, a fall in an economy's overall level of prices tends to A. raise both the quantity demanded and supplied of goods and services. B. raise the quantity demanded of goods and services, but lower the quantity supplied. C. lower...
With a fixed exchange rate, what would increase output in the short run? Contractionary fiscal policy...
With a fixed exchange rate, what would increase output in the short run? Contractionary fiscal policy Contractionary monetary policy Expansionary fiscal policy Expansionary monetary policy
f contractionary monetary policy is used, then which of the following would be most likely to...
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
An advantage of a floating exchange rate is that: It permits the country to conduct an...
An advantage of a floating exchange rate is that: It permits the country to conduct an independent monetary policy It causes wages in different regions of a country to be equal It raises the value of the currency to a higher level than could be achieved with a fixed rate It prevents inflation
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...
19 20
QUESTION 19 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? O Only with increasing output O Only with increasing the current account balance O No, not with either goal Yes, with both goals QUESTION 20 and output will In the short run, if the central bank decreases the money supply,...
If the Bank of Canada conducts contractionary monetary policy, which of the following can we expect to occur? Check ALL that apply. interest rates on bonds will rise the Canadian dollar will depreciate it value investment spending will fall Canadian exports will rise and imports will fall
15,16
Question Completion Status: QUESTION 15 With a fixed exchange rate, what would be effective stabilization policy during a recession? O Expansionary fiscal policy O Expansionary monetary policy O Contractionary fiscal policy O Contractionary monetary policy QUESTION 16 because it affects a component of aggregate demand. On the DD curve, exchange rate depreciation causes output to A. fall; investment B. fall; the current account o rise; consumption OD. rise; the current account QUESTION 17 shte in tame Inflation. The country's
because it Monetary policy that decreases the interest rate is called A. contractionary monetary policy, reduces AD. B. contractionary monetary policy; reduces SRAS. C. expansionary monetary policy; increases AD. D. expansionary monetary policy; increases SRAS. QUESTION 11 Other things the same, a fall in an economy's overall level of prices tends to A. raise both the quantity demanded and supplied of goods and services. B. raise the quantity demanded of goods and services, but lower the quantity supplied. C. lower...
With a fixed exchange rate, what would increase output in the short run? Contractionary fiscal policy Contractionary monetary policy Expansionary fiscal policy Expansionary monetary policy
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
An advantage of a floating exchange rate is that: It permits the country to conduct an independent monetary policy It causes wages in different regions of a country to be equal It raises the value of the currency to a higher level than could be achieved with a fixed rate It prevents inflation
Most questions answered within 3 hours.
-
Work of 1950 J is done by stirring a perfectly insulated beaker
containing 75 g of...
asked 19 minutes ago -
The neighborhood kids set up an outdoor lemonade stand in
Maryland in June. They find that...
asked 20 minutes ago -
9. A company has a beginning inventory of 4,000 units. The
company estimates it will sell...
asked 34 minutes ago -
A patient goes to the doctor's office with symptoms of a urinary
tract infection and provides...
asked 36 minutes ago -
When responding to the essay questions, be sure to cite any
material you obtained from a...
asked 36 minutes ago -
The energy of an electron in a 2.25-eV-deep potential well is
1.50 eV.At what distance into...
asked 38 minutes ago -
Q1:Which three evolutionary innovations are present in land
plants (but not all land plants) that allowed...
asked 40 minutes ago -
Lymphosarcoma is
extremely rare. Risk factors for the disease are largely unknown.
What kind of study...
asked 43 minutes ago -
The solubility of benzoic acid in water is:
0.29g/100mL at 20°C
6.8g/100mL at 100°C
a) What...
asked 44 minutes ago -
Which food law was passed in 1996 and changed how pesticide
residues on food were regulated...
asked 1 hour ago -
companies either hire outside programmers to
write_____ software or use their own internal developers.
asked 1 hour ago -
A magnetic dipole m(t) = m_0*cos(ωt) can be
described as current density j(r,t) = −cm(t) ×...
asked 1 hour ago