Which of the following statements is correct, when the exchange rate changes from €2/$ to €1.5/$?
a. Both the euro and the dollar appreciate.
b. Both the euro and the dollar depreciate.
c. None of the above.
d. The euro (€) depreciates.
e. The euro appreciates and the dollar depreciates.
.E
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The main argument against Fed independence is that
A) in a democracy elected officials should make public policy. B) monetary and fiscal policy would be easier to coordinate if the Fed were not independent. C) the Fed has proven irresponsible on many occasions. D) congressional control was tried during the 1960s and it worked well.
After a period of price stability in the 1990s, housing prices increased dramatically during 2002-2005 because
a. regulations designed to make housing more affordable increased the demand for housing and drove housing prices upward. b. regulations designed to make housing more affordable decreased the number of sub-prime loans and made home buying a safer investment. c. mortgage lending standards tightened, and therefore mortgage loans for housing were only available to buyers purchasing highly expensive homes. d. home buyers were putting more money down and requiring more return on their investment, driving housing prices up.