If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then
A) the dollar has appreciated. B) the British pound has depreciated.
C) the dollar has depreciated. D) the British pound has stayed constant in value.
C
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Which of the following Fed actions would both increase the money supply?
a. buy bonds and raise the reserve requirement b. buy bonds and lower the reserve requirement c. sell bonds and raise the reserve requirement d. sell bonds and lower the reserve requirement
Which of the following statements is false?
A) Keynes believed that monopolistic elements in the economy will prevent immediate price declines. B) Keynes believed that during periods of high unemployment, labor unions will prevent wages from falling fast enough to restore full employment. C) Keynes believed that interest rate flexibility will ensure that saving is equal to investment. D) Keynes did not believe in Say's law.