The Plaza Accord of 1985 announces that the
A) G-5 countries will intervene in the foreign exchange market to bring about a dollar appreciation.
B) G-7 countries will intervene in the foreign exchange market to bring about a dollar depreciation.
C) G-5 countries will intervene in the foreign exchange market to bring about a dollar depreciation.
D) G-7 countries will intervene in the foreign exchange market to bring about a DM depreciation.
E) G-5 countries will not intervene in the foreign exchange market unless the dollar needs to appreciate.
C
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An increase in the expected price level will
a. increase labor supply, money wages, decrease the price level and income. b. decrease labor supply, increase money wages, decrease the price level and income. c. decrease labor supply, decrease money wages, and decrease the price level and income. d. increase labor supply, decrease money wages, decrease the price level, and increase income.
Money neutrality is violated in which model?
a. new Keynesian model. b. monetarist model. c. real business cycle model. d. classical model. e. both c and d.