Exchange rates are for currency what:

Exchange rates are for currency what:
 a. c, d and e.
  b. discounts are for sales.
  c. interest is for capital.
  d. prices are for apples.
  e. wages are for labor.

QUESTION 2

Keynes argued that the economy naturally achieves full employment because supply creates its own demand.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Between 1960 and 1997, the federal budget was never in surplus.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Who would benefit if the exchange rate with yen (in U.S. dollars) increased?
 a. c and e.
  b. Japanese tourists.
  c. U.S. consumers.
  d. U.S. exporters.
  e. Japanese exporters.

QUESTION 5

Classical economists reject the laissez-faire theory that the economy would self correct to full employment without government interference.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

The U.S. Treasury is responsible for preparing and submitting the initial budget recommendation to the president.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

The nice thing about foreign exchange markets is that the goods are money, and they are paid for with money. This means that if the U.S. dollar ____ the Japanese yen ____.
 a. goes down; goes down
  b. goes up; goes up
  c. buys more yen; buys more dollars
  d. buys fewer yen; buys fewer dollars
  e. buys more yen; buys fewer dollars