If there is a temporary increase in the money supply in the Eurozone, ceteris paribus, what is the result for the United States?
a. The money supply in the United States must decrease by the same proportion.
b. The U.S. dollar nominal interest rate will increase, as the euro rate is unchanged.
c. Long-run expectations shift to expect a stronger euro.
d. The dollar appreciates against the euro.
Ans: d. The dollar appreciates against the euro.
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Over the past two decades, total and per capita water use in the United States have:
A. both increased. B. leveled off and fallen, respectively. C. fallen and leveled off, respectively. D. increased and fallen, respectively.
A type of public policy set in response to rising prices of a basic necessity, such as food, might be:
A. to make it illegal to charge higher prices for those goods. B. to hire more producers of those goods. C. to subsidize the price of those goods. D. All of these are ways government can try to address rising prices of a basic necessity.