Which of the following would NOT increase British exports to the United States?
A. an appreciation of the British pound
B. a depreciation of the British pound
C. an appreciation of the U.S. dollar
D. an increase in British demand for U.S. exports
Answer: A
Economics
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To contract the money supply, the Fed should
A) lower the required reserve ratio. B) increase government spending and cut taxes. C) reduce the differential between the discount rate and the federal funds rate. D) sell U.S. government securities.
Economics
In the IS-LM model, the two variables that are affected by the interest rate are
a. money supply and money demand. b. money supply and investment spending. c. money demand and consumption. d. money demand and investment spending. e. none of the above.
Economics