Which of the following events would result in a greater demand for U.S. dollars in the foreign exchange market, ceteris paribus?
A. Higher tariffs imposed by the United States on imports.
B. An increase in interest rates in the United States.
C. Higher quotas imposed by the United States on imports.
D. An increase in interest rates in Japan.
Answer: B
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At the beginning of a recession, the expenditure multiplier
A) offsets the initial cut in autonomous expenditure and slows the recession. B) has no effect on the recession. C) offsets the initial cut in autonomous expenditure and reverses the recession. D) reinforces the initial cut in autonomous expenditure and reverses the recession. E) reinforces the initial cut in autonomous expenditure and adds force to the recession.
How has inexpensive broadband changed the production possibilities of video entertainment and other goods and services?
What will be an ideal response?