Which of the following lists two things that both increase the money supply?
a. the Fed buys bonds and lowers the discount rate.
b. the Fed buys bonds and raises the discount rate.
c. the Fed sells bonds and lowers the discount rate.
d. the Fed sells bonds and raises the discount rate.
A
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According to Richard Baldwin, studies indicating massive increases in trade resulting from currency unions are:
A) biased because of use of data from rich countries. B) generally applicable to the euro. C) underestimating the impact of the euro on intra-European Union trade. D) not the result of lowering the transaction costs for trade within the euro area.
Suppose the yen value of a $100,000 wheat import contract rises from ¥12,000,000 to ¥13,000,000 between the contract and the payment date. This implies that the yen value of 1 dollar has declined so that, other things equal, we can expect an increase in Japanese demand for U.S. goods
a. True b. False Indicate whether the statement is true or false