All other things unchanged, a higher exchange rate
A. reduces net exports and aggregate demand
B. reduces net exports and increases aggregate demand
C. increases net exports and aggregate demand
D. increases net exports and reduces aggregate demand
Ans: A. reduces net exports and aggregate demand
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If the Fed buys U.S. government securities,
A) the discount rate will fall. B) bank reserves will decrease. C) the discount rate will rise. D) the federal funds rate will fall. E) the federal funds rate will rise.
Harry and his wife are looking for a new house. However, they cannot decide where to buy the house. Harry wants to live in Santa Cruz, while his wife wants to live in Ontario
If Harry values living in Santa Cruz at $10,000 and his wife values living in Ontario at $15,000, in which place are they likely to buy a house?