If the U.S. interest rate differential rises, then the effect in the foreign exchange market on the demand for dollars is that the
A) demand for dollars decreases.
B) quantity of dollars demanded decreases.
C) quantity of dollars demanded increases.
D) demand for dollars increases.
E) demand for dollars does not change and the quantity of dollars demanded also does not change.
D
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In the production possibilities frontier depicted in the figure above, what is the opportunity cost of increasing the production of bananas from two million pounds to three million pounds?
A) 1/2 hat per pound of bananas B) 1 hat per pound of bananas C) 2 hats per pound of bananas D) 3 hats per pound of bananas
Using the Cambridge equation, by how much does the demand for money rise at a constant real GDP of $2,000 billion when the price level rises by 10 percent from 1.00, given k = 0.25?
A) $200 billion B) $20 billion C) $550 billion D) $50 billion