Other things equal, Canadian imports of U.S. goods:
A. create a supply of Canadian dollars in the foreign exchange market.
B. create a supply of U.S. dollars in the foreign exchange market.
C. reduce the demand for U.S. dollars.
D. have no effect on the U.S. dollar price of Canadian dollars.
A. create a supply of Canadian dollars in the foreign exchange market.
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A tariff is imposed on a good. This will ________ the domestic producer surplus, ________ the domestic consumer surplus, and ________ total surplus in the home country
A) increase; decrease; decrease B) increase; decrease; increase C) increase; remain unchanged; increase D) increase; increase; increase
"With autonomous changes in the policy interest rate, the Federal Reserve cannot determine the long run equilibrium level of the real interest rate or potential output and will only be able to determine inflation"
This statement is consistent with ________. A) the notion that shifts in the MP curve may lead to shifts in the AD and AS curves but the LRAS remains unchanged B) the notion of long-run independence between nominal and real variables C) the notion of monetary neutrality D) all of the above E) none of the above