Which of the following statements is true?
A. Expansionary monetary policy tends to lower the exchange rate of an economy. The effects of expansionary fiscal policy are unclear.
B. Expansionary fiscal and monetary policy both tend to increase the exchange rate of an economy.
C. The effects of both expansionary fiscal and monetary policy on the exchange rate of an economy are unclear.
D. Expansionary fiscal policy tends to increase the exchange rate of an economy. The effects of expansionary monetary policy are unclear.
Answer: A
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Suppose the current equilibrium wage rate for landscapers is $6.65 in Little Rock; $7.50 in St. Louis and $9.05 in Raleigh. An increase in the minimum wage to $7.50 per hour results in unemployment of landscapers in
A) Little Rock and St. Louis. B) only Raleigh. C) Little Rock, St. Louis, and Raleigh. D) only Little Rock. E) St. Louis and Raleigh.
A firm should hire workers up to the point where
A) MP = P. B) MFC = P. C) MFC = MRP. D) MP = MRP.