Which statement is true?
A. Foreigners are holding over $1 trillion in U.S. currency (which they have not invested in the U.S.).
B. If foreigners keep buying U.S. assets, we will run out of things to sell before the year 2025.
C. Within 10 years the United States will probably go bankrupt.
D. None of these statements are true.
A. Foreigners are holding over $1 trillion in U.S. currency (which they have not invested in the U.S.).
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Suppose that the price of lettuce used to produce tacos increases. This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; decreases
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency remains the same. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The GDP Price Index rises, and nominal value of the domestic currency rises. e. The GDP Price Index falls, and nominal value of the domestic currency rises.