Which of the following is consistent with moving from a shortage to equilibrium in the market for foreign currency exchange?
a. the exchange rate falls so foreign residents want to buy more U.S. goods and services
b. the exchange rate falls so foreign residents want to buy fewer U.S. goods and services
c. the exchange rate rises so foreign residents want to buy more U.S. goods and services
d. the exchange rate rises so foreign residents want to buy fewer U.S. goods and services
d
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The majority of the income earned in the United States is paid in
A) wages. B) rent. C) profit. D) dividends. E) interest.
According to Keynesians, for monetary policy to have a stimulative effect on GDP, a(n):
a. increase in the money supply lowers the interest rate in order to stimulate higher levels of investment. b. increase in the money supply lowers the interest rate in order to lower levels of investment. c. decrease in the money supply lowers interest rate in order to stimulate higher levels of investment d. decrease in the money supply causes the interest rate to rise in order to stimulate higher levels of investment. e. increase in the money supply causes the interest rate to rise in order to stimulate higher levels of investment.