Assuming the United States is the domestic country, if the real exchange rate between the United States and France increases from 1.5 to 1.8
A) the prices of U.S. goods and services have increased by 20 relative to France.
B) the prices of U.S. goods and services have increased by 53 relative to France.
C) the prices of U.S. goods and services have increased by 3 relative to France.
D) the prices of U.S. goods and services have decreased by 16 relative to France.
Ques. 2When a financial asset is first sold, the sale takes place in the ________ market, and subsequent sales take place in the ________ market.
A) secure; risk B) stock; bond
C) investment; commercial D) primary; secondary
Ques. 3The monetary growth rule is a plan for increasing the quantity of money
A) at a rate which increases as the economy grows.
B) at a rate which decreases as the economy declines.
C) at a rate which increases during recessions and decreases during expansions.
D) at a fixed rate that does not respond to changes in the economic condition.
Ques. 4If the consumption function is defined as C = 5,500 + 0.9Y, what is the value of the multiplier?
A) 0.l B) 0.9 C) 6.1 D) 10
Ques. 5A financial asset is considered a security if
A) the owner of the security receives dividends and realizes a capital gain when the asset is sold.
B) its value increases after it is sold in a primary market.
C) it can be sold in a secondary market.
D) its value is secure; that is, the owner will not suffer a financial loss when the asset is sold.
Ques. 6According to the real business cycle model
A) increases in aggregate demand do not affect GDP.
B) increases in aggregate demand lower the price level.
C) increases in aggregate demand raise GDP.
D) increases in aggregate demand lower GDP.
Ques. 7Assume the United States is the domestic country and China is the foreign country. Which of the following might increase the real exchange rate between the United States and China?
A) an increase in the price level in the United States.
B) an increase in the price level of China
C) a depreciation of the dollar
D) an appreciation of the yuan
Quick Reply
