Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. What might the U.S. Federal Reserve do to offset the macroeconomic effect of the leftward shift in the U.S. IS curve?
A) It would increase the money supply.
B) It would decrease the money supply.
C) It would not change its monetary policy.
D) It would not change its fiscal policy
Answer: A) It would increase the money supply.
Economics
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A second-price auction
a. is also called a Vickrey auction b. is conducted by bidders submitting a single sealed bid c. is where the highest bidder wins and pays the amount of the next highest bid d. all of the above
Economics
If Y = $100 billion, then C = $50 billion, and I = $60 billion. What will autonomous investment be when Y = $200 billion and C = $100 billion?
a. $50 billion b. $60 billion c. $100 billion d. $120 billion e. $200 billion
Economics