You see on the news that a recession has started in Saudi Arabia. Which of the following would happen in the market for Saudi riyals?
a. A decrease in the supply of riyals and an appreciation of the riyal.
b. An increase in the supply of riyals and a depreciation of the riyal.
c. A decrease in the supply of riyals and a depreciation of the riyal.
d. An increase in the supply of riyals and an appreciation of the riyal.
e. Cannot be determined without additional information.
A
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All of the following are instruments of fiscal policy except
A) rebate on payroll taxes. B) education tax credits. C) unemployment insurance benefits. D) an interest rate cut.
Economists have long pondered the reasons why people hold money. Some reasons seem to be more important than others. Perhaps not among the most important but still a reason why people hold money is for emergency purposes (the idea of having money available for that "rainy day"). Economist refer to that demand for money as
a. precautionary b. emergency c. speculative d. transactions e. temporary