If the target exchange rate is 100 yen per dollar and the current exchange rate is 90 yen per dollar, the Fed will
A) sell dollars and the demand for dollars will increase.
B) sell dollars and the demand for dollars will decrease.
C) buy dollars and the demand for dollars will increase.
D) buy dollars and the demand for dollars will decrease.
C
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According to Keynes's theory of liquidity preference, velocity increases when
A) income increases. B) wealth increases. C) brokerage commissions increase. D) interest rates increase.
Refer to the information provided in Table 36.2 below to answer the question(s) that follow. Table 36.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 36.2. The error for point B is equal to
A. -3. B. -2. C. +2. D. +3.