If exchange rates are perfectly flexible, an expansionary U.S. monetary policy will
a. increase the supply of dollars in the foreign exchange market.
b. shift the LM curve to the right.
c. reduce the demand for dollars in the foreign exchange market.
d. reduce the value of the dollar.
e. all of the above.
E
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Without an accepted medium of exchange
A) people would have to rely on gold or silver in order to exchange goods and services. B) goods and services would be exchanged by barter. C) prices are very difficult to determine. D) there would be no trade.
Suppose the population of a fictional economy falls into the following categories: 320 are employed full time; 110 are employed part time; 20 are unemployed but are actively looking for employment; 50 are unemployed and are not actively looking for
employment. The official unemployment rate as calculated by the BLS would be A) 4.4%. B) 5.9%. C) 14.0%. D) 28.9%.