Unexpected inflation harms both debtors and individuals who live on fixed incomes.
a. True
b. False
Indicate whether the statement is true or false
Question 2No currency ever appreciated or depreciated under the Bretton Woods system as it was based on a system of fixed exchange rates.
a. True
b. False
Indicate whether the statement is true or false
Question 3Suppose that the exchange rate between Mexican pesos and dollars is 8 pesos per dollar. If the exchange rate goes to 6 pesos per dollar, it would tend to:
a. increase U.S. exports to Mexico.
b. decrease U.S. exports to Mexico.
c. increase Mexican exports to the rest of the world.
d. decrease Mexican exports to the rest of the world.
Question 4Many economists believe that skill-biased technical change has increased the incomes of both highly skilled workers and low-skill workers
a. True
b. False
Indicate whether the statement is true or false
Question 5The exchange-rate arrangement that emerged from the Bretton Woods conference is often called a managed float standard.
a. True
b. False
Indicate whether the statement is true or false
Question 6Suppose that the exchange rate between British pounds and U.S. dollars is originally 2.50 per pound. If it then changes to 3 for 1 pound, imports of British goods into the U.S. tend to:
a. rise.
b. fall.
c. stay the same.
d. change in an indeterminate direction.
Question 7Many economists believe that skill-biased technical change has increased the incomes of highly skilled workers and decreased the incomes of low-skill workers.
a. True
b. False
Indicate whether the statement is true or false
Question 8The gold standard ended in the 1970s because the gold supplies failed to keep pace with the increase in money supplies required for industrialization and rapid economic growth witnessed in this era.
a. True
b. False
Indicate whether the statement is true or false
Question 9Suppose that the exchange rate between British pounds and U.S. dollars is originally 2.50 per pound. If it then changes to 3 for 1 pound, exports of U.S. goods to Britain will tend to:
a. rise.
b. fall.
c. stay the same.
d. change in an indeterminate direction.
Question 10If, over time, a greater proportion of the labor force is comprised of middle-aged individuals, one would expect the natural rate of unemployment to rise.
a. True
b. False
Indicate whether the statement is true or false
Question 11Suppose that the price of an ounce of gold is 120 pesos in Mexico and 2,400 yen in Japan. Then the Japanese yen is worth two hundred times the value of a Mexican peso.
a. True
b. False
Indicate whether the statement is true or false
Question 12Suppose that the exchange rate between British pounds and U.S. dollars is originally 2.50 per pound. If it then changes to 3 for 1 pound, the price of U.S. goods to British importers will:
a. rise.
b. fall.
c. stay the same.
d. change in an indeterminate direction.
Question 13The natural rate of unemployment can change over time as technological, demographic, institutional, and other conditions vary.
a. True
b. False
Indicate whether the statement is true or false
Question 14Countries that maintain a constant gold value for their currencies are said to be on a gold standard.
a. True
b. False
Indicate whether the statement is true or false
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