Which of the following is included in the supply of U.S. dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?
a. a U.S. bank loans dollars to Tom to buy a U.S. made motorcycle
b. a U.S. tire maker wants to build a new factory in China
c. a U.S. company wants to import goods to sell in its retail stores
d. All of the above are correct.
b
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Fiscal policy may end up being destabilizing to an economy because
A) there is never a long enough time lag. B) the economy is almost always at full employment. C) the President may have different goals than Congress. D) various time lags associated with fiscal policy cause the policy changes to take effect too late to solve the problem it was supposed to solve.
The term demand refers to
a. a collection of numbers, listing the quantities demanded at a variety of hypothetical prices. b. the information on tastes, incomes, and prices needed to determine people's desired purchases of a commodity. c. the amount of a commodity that is being purchased under current market conditions. d. the quantity purchased at each and every possible level of income.