Other things equal, in an open economy, monetary policy to offset an inflationary gap will tend to
a. Lower the exchange value of the dollar and lower net exports.
b. Lower the exchange value of the dollar and raise net exports.
c. Raise the exchange value of the dollar and lower net exports.
d. Raise the exchange value of the dollar and raise net exports.
c
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Answer the following statement(s) true (T) or false (F)
1. A parallel shift in the budget line is caused by changes in the relative prices of the two goods. 2. Parallel shifts in the budget line are considered when deriving the demand curve for a good. 3. An Engel curve shows the relationship between price and quantity demanded. 4. Normal goods have upward-sloping Engel curves. 5. If an Engel curve is downward sloping, then one of the two goods must be inferior.
The ________ curve describes the relationship between tax rates and tax revenue.
Fill in the blank(s) with the appropriate word(s).