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Question
When in 1985 a British pound cost approximately $1.30, a Shetland sweater that cost 100 British pounds would have cost $130. With a weaker dollar, the same Shetland sweater would have costA. less than $130.
B. more than $130.
C. $130, since the exchange rate does not affect the prices that American consumers pay for foreign goods.
D. $130, since the demand for Shetland sweaters will decrease to prevent an increase in price due to the stronger dollar.
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
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B. U.S. Treasury.
C. Federal Reserve System.
D. Bureau of Monetary Affairs.
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A. balanced budgets.
B. rapidly growing money supplies.
C. falling money supplies.
D. constant money supplies.
Q:
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B. banks.
C. over-the-counter markets.
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D. produce nothing of value and are therefore a drain on society's resources.
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Which of the followings does NOT describe the goods market in the ISLM model?
A. consumption function
B. investment function
C. government spending and tax
D. money demand function
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A. IS; right
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Q:
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A. exceeds; rise; right
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Q:
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A. demand; right
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Q:
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A. a Taylor rule.
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C. a policy rule advocated by monetarists.
D. advocated by activists.
Q:
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B. the Lucas critique.
C. public choice theory.
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Q:
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A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
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Q:
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Q:
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D. all of the above.
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Q:
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Q:
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B. the long-run aggregate supply curve shifts leftward.
C. the short-run aggregate supply curve shifts upward.
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Q:
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Q:
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Q:
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C. The Chinese economy was better able than the U.S. economy to weather the financial crisis with output growth starting to grow earlier and more quickly than that of the U.S.
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E. None of the above.
Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
Q:
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A. increase; increase
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Q:
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A. right; appreciate
B. right; depreciate
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