If the U.S. dollar appreciates relative to the Brazilian cruzeiro, then
a. the U.S. dollar-cruzeiro exchange rate will increase
b. U.S. goods become less expensive in Brazil
c. Brazilian goods become more expensive in the U.S.
d. Brazilian investors will pay fewer cruzeiros to buy each U.S. dollar
e. the U.S. will import more from Brazil
E
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Refer to the above figure. Unexpected expansionary monetary policy has caused the aggregate demand curve to shift to AD2. In the long run
A) real GDP will be Y1, and the price level will be above P2. B) real GDP will be between Y1 and Y2, and the price level will be between P1 and P2. C) real GDP will be Y2, and the price level will be P2. D) real GDP will be Y1, and the price level will be P1.
The "home" equilibrium will provide the highest level of consumer satisfaction from domestic resources whenever:
a. the marginal products of labor are equal. b. capital and technology are not factors in the decision of what to produce. c. perfect competition in product and labor markets exists. d. Adam Smith's "invisible hand" is not an interfering factor.