Suppose economic stability in the United States increases. This will tend to cause which of the following to occur?
A) The demand for U.S. dollars will rise in the foreign exchange market.
B) The supply of U.S. dollars will rise in the foreign exchange market.
C) The demand for euros will rise in the foreign exchange market.
D) Nothing will change in the foreign exchange market.
Answer: A
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During 2010, a country reports that its price level fell and the money wage rate did not change. These changes led to
A) a lower real wage rate, lower profits, and a decrease in the quantity of real GDP supplied. B) a higher real wage rate, lower profits, and a decrease in the quantity of real GDP supplied. C) a higher real wage rate, higher profits, and an increase in the quantity of real GDP supplied. D) a lower real wage rate, higher profits, and an increase in the quantity of real GDP supplied. E) no change in the real wage rate and an increase in aggregate demand.
Susan just sold her text books for $200 cash and deposited the cash she received in her checking account. This transaction has
A) increased the quantity of M1. B) decreased the quantity of M1. C) increased the quantity of M2. D) decreased the quantity of M2. E) not changed either M1 or M2.