Exchange rates in what is termed the “medium run”
A. will be altered by an economic upswing because consumers buy more goods including imports when disposable income goes up.
B. will be unaffected by economic changes in personal income or consumption spending.
C. will appreciate for a country having an economic boom when others are not.
D. All of the above are correct.
Answer: A
Economics
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If the Fed wants to reduce the value of the dollar, it will
A) sell foreign assets and buy dollars. B) sell dollars and buy foreign assets. C) buy foreign assets and also buy dollars. D) sell foreign assets and also sell dollars.
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With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning zero dollars would receive a subsidy of:
a. zero b. $1,600 c. $6,400 d. $8,000
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