A decrease in Swiss prices will cause:
A. an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
B. a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar.
C. an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar.
D. a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
Answer: C
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The study of aggregate economic activity for the economy as a whole is
A. Opportunity cost. B. Scarcity. C. Microeconomics. D. Macroeconomics.
Since the U.S. economy expanded rapidly from 1992 to 2000, it must be true that
A. fiscal contraction overwhelmed monetary expansion. B. monetary expansion overwhelmed fiscal contraction. C. monetary expansion exactly offset fiscal contraction. D. monetary contraction overwhelmed fiscal expansion.