The exchange rate effect of a price increase is: if the US price level increases, then the Fed increases interest rate i...
The exchange rate effect of a price increase is: if the US price level increases, then the Fed increases interest rate in order to stabilize the price level. As a result US dollar appreciates causing US exports to decreases.
a. False
b. True
If the Fed increases money supply, then:
a. the value of money decreases.
b. the price level increases.
c. Both of the above
d. none of the above
Which of the following will the Aggregate Demand curve to shift to the right?
a. A boom in the stock market
b. A decrease in market interest rate
c. None of the above
d. both a and b
Homework Answers
1.When dollar appreciates the price of exports rises causing the demand of Exports to fall.
Answer-True.
2.An increase in money supply raises aggregate demand, raising price level and output.An increase in price level lowers the value of money
Answer-C
3.A boom in stock market increases both consumer's and investor's confidence.A reduction in interest rate increases income,increasing AD.
Answer-D
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The exchange rate effect of a price increase is: if the US price level increases, then the Fed increases interest rate i...
If the price level decreases, then aggregate demand increase along the AD curve but the curve doesn’t shift. a. True b....
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1. What is the short-run effect on the exchange rate of an increase in domestic real...
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If the price level in the USA increases, then which of the following will happen? a....
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An increase in the price level when the money wage rate remains unchanged increases _______
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5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the...
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13. If the Fed conducts Open Market Purchase, then: a. price of bonds increase, interest rates decrease and money supply...
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Question 8 The theory of liquidity preference implies that an increase in the price level shifts...
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1. In addition to the price level, what does the aggregate demand and aggregate supply model...
1. In addition to the price level,
what does the aggregate demand and aggregate supply model focus
on?
a. real
GDP
b.
nominal GDP
c.
the real interest rate
d. stock
prices
2. Which statement best characterizes the long-run
aggregate-supply curve?
a. It is
horizontal.
b. It
shows a positive relationship between price level and output.
c.
It demonstrates the importance of money in the economy....
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the multiplier is A) 5 B) 0.5.C)2. D) 0.3. 6) When the GDP in Kuwait rises relative to the GDP in other countries, will fall and will fall A) exports; imports B) exports; net exports C) imports; net exports D) net exports; imports 7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand...
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1. In addition to the price level,
what does the aggregate demand and aggregate supply model focus
on?
a. real
GDP
b.
nominal GDP
c.
the real interest rate
d. stock
prices
2. Which statement best characterizes the long-run
aggregate-supply curve?
a. It is
horizontal.
b. It
shows a positive relationship between price level and output.
c.
It demonstrates the importance of money in the economy....
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