Refer to the information provided in Figure 32.2 below to answer the question(s) that follow. Figure 32.2Refer to Figure 32.2. According to the new classical economists, under rational expectations an expected decrease in government spending would

Refer to Figure 19-8. The equilibrium exchange rate is at A, $1.25/euro. Suppose the European Central Bank pegs its currency at $1.00/euro. Speculators expect that the value of the euro will rise and this shifts the demand curve for euro to D2

After the shift, A) there is a surplus of euros equal to 400 million. B) there is a surplus of euros equal to 500 million. C) there is a shortage of euros equal to 800 million. D) there is a shortage of euros equal to 1,000 million.

The supply curve for bonds has the usual upward slope, indicating that as the price ________, ceteris paribus, the ________ increases

A) falls; supply B) falls; quantity supplied C) rises; supply D) rises; quantity supplied