For this question, assume that exchange rates are flexible and that the exchange rate expected to occur in one year is not constant. Suppose that individuals now expect that the foreign central bank will pursue expansionary monetary policy in one year. This expected future monetary expansion by the foreign central bank will cause which of the following to occur?
A) The current nominal exchange rate will decrease.
B) The current nominal exchange rate will increase.
C) The current nominal exchange rate will not change.
D) The effects on the current nominal exchange rate are ambiguous.
B
Economics
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Which of the following is the largest category of federal government expenditures?
A) defense spending B) transfer payments C) interest on the debt D) grants to state and local governments
Economics
Society faces a trade-off in all of the following situations except
A) when deciding who will receive the goods and services produced. B) when deciding what goods and services will be produced. C) when deciding how goods and services will be produced. D) when some previously unemployed workers find jobs.
Economics