A decrease in the foreign interest rate relative to the domestic interest rate ________ the exchange rate value of a foreign currency in the short run.

Demand-pull inflation is associated with a(n)

a. decrease in the aggregate supply curve b. increase in the aggregate supply curve c. increase in the aggregate demand curve d. decrease in the aggregate demand curve e. decline in the availability of a productive resource

Suppose you borrow $500 from your bank to pay for a guitar. This is an example of

A) direct financing. C) moral hazard. B) indirect financing. D) transaction costs.