Easy monetary policy reduces the real interest rate, which ________ the demand for dollars, ________ the supply of dollars, and ________ the equilibrium value of the dollar.
A. decreases; increases; decreases
B. increases; increases; increases
C. increases; decreases; increases
D. decreases; decreases; decreases
Answer: A
Economics
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Correlation means
A) "on the margin." B) the tendency for the values of two variables to move in a predictable and related way. C) other things remaining the same. D) "after this, therefore because of this." E) a natural experiment has been conducted.
Economics
Suppose a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value. The Lexus sells for 6,000,000 Japanese yen in Tokyo and the Mercedes sells for 50,000 euros in Stuttgart. Using the purchasing power parity theory, explain the exchange rate between the yen and the euro.
What will be an ideal response?
Economics