In the foreign exchange market, if the demand for dollars permanently decreases, the Fed can maintain the exchange rate at its old equilibrium level indefinitely by buying dollars

What is the goal of fiscal policy, and what tools have policymakers traditionally used to conduct fiscal policy?

What will be an ideal response?

What does the U.S. business cycle experience suggest about periods of war?

A) the economy tends to boom during the period of war B) after the war is over, the economy typically experiences a downturn C) they are associated with good economic times D) all of the above E) none of the above