Ceteris paribus, an increase in the U.S. demand for Greek goods in Figure 36.1 will
A. Result in a movement from M to R on the supply curve for dollars.
B. Result in a movement from M to N on the demand curve for dollars.
C. Make U.S. goods more expensive to Greek residents.
D. Increase the dollar price of euros above $2 = 1 euro.
Answer: B
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Refer to Figure 15-14. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) increase the required-reserve ratio B) sell Treasury bills C) decrease income taxes D) buy Treasury bills
Everything else held constant, which of the following does NOT cause aggregate demand to increase?
A) an increase in net exports B) an increase in government spending C) an increase in taxes D) an increase in consumer optimism