A decrease in U.S. interest rates relative to Japanese interest rates will
a. decrease the supply of dollars on the foreign exchange market
b. increase the demand for dollars on the foreign exchange market
c. increase the supply of dollars on the foreign exchange market
d. cause the value of the dollar to appreciate
e. cause U.S. exports to increase
C
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Suppose Regretta Sigh becomes the lucky winner of a $10,000,000 state lottery jackpot after purchasing a single $1.00 lottery ticket. How does her lucky expenditure affect current GDP?
A) GDP rises by $1.00. B) GDP rises by $9,999,999. C) GDP rises by $10,000,000. D) GDP rises by $10,000,001. E) GDP rises by the present value of the total cash prize.
RBC theory leads to ________ government macro-stabilization policy, due to the theory's assumption of ________
A) a rationale for, slow wage and price adjustment B) a rationale for, continuous market-clearing C) a rejection of, slow wage and price adjustment D) a rejection of, continuous market-clearing