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An appreciation of the U.S. dollar
a. makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports.b. makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports.c. makes our exports less expensive in terms of foreign currency and imports cheaper in terms of the dollar, increasing net exports.d. makes our exports more expensive in terms of foreign currency and imports cheaper in terms of the dollar, decreasing net exports.
Suppose Tim has $1,000 in cash on hand to buy collectable baseball cards at a swap meet. Tim often sells these cards at a profit. This is an example of the
a. transaction demand for moneyb. precautionary demand for money.c. asset demand for money.d. wealth demand for money.
The relationship between the interest rate and the asset demand for money is
a. positive sometimes and inverse other times.b. inverse.c. nonexistent.d. positive.
Which of the following would NOT be a result of a contractionary monetary policy?
a. Interest rates would rise.b. Net exports would decline.c. Foreign goods would become more expensive to U.S. residents.d. Imports would rise.
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