If the value of a dollar falls, then the quantity of money demanded
a. rises, meaning people want to hold more of their wealth in a liquid form.
b. rises, meaning people desire to work more so their income rises.
c. falls, meaning people want to hold less of their wealth in a liquid form.
d. falls, meaning people want to work less so their income falls.
a
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Which of the following is an argument in favor of outward-oriented strategy?
a. It leads to a fall in government deficit spending. b. It leads to a fall in domestic prices of imported goods. c. It helps the economy to grow more rapidly by encouraging exports. d. It leads to an increase in the price of exported goods in the foreign markets. e. It leads to an increase in the supply of goods and services in the domestic market.
The Fed's objectives have remained the same since its inception
a. True b. False