Currency appreciation would occur in a nation if
A. the demand for the nation's exports increases.
B. the demand for the nation's imports increases.
C. real interest rates in the nation decrease relative to the rest of the world.
D. the inflation rate is higher within the nation than in the rest of the world.
A. the demand for the nation's exports increases.
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When the U.S. real interest rate falls ________
A) U.S. dollar assets earn a higher return relative to foreign assets B) it makes U.S. exports more expensive in foreign currencies C) imports will decrease D) all of the above E) none of the above
Which of the following tax changes would a supply-side economist be most likely to favor?
a. eliminating an investment tax credit b. an increase in the capital gain tax c. lower marginal income tax rates d. an increase in the personal income tax rate for high-income individuals