Following political tensions, Germanys marginal propensity to import from Russia is likely to decrease and its 1S curve is likely to shift down. The govemment attempts to avoid an economic downturn. Using monetary policy can help with everything except: 10 Select one answer: O Reaching a new and higher level of output. O Restoring the previous level of interest rate. O Restoring the slope of the IS curve. O Restoring the previous level of output.

Following political tensions, Germanys marginal propensity to import from Russia is likely to decrease and its 1S curve is likely to shift down. The govemment attempts to avoid an economic downturn. Using monetary policy can help with everything except: 10 Select one answer: O Reaching a new and higher level of output. O Restoring the previous level of interest rate. O Restoring the slope of the IS curve. O Restoring the previous level of output.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 25CTQ: If a countrys currency is expected to appreciate in value, what would you think will be the impact...

See similar textbooks

Similar questions

Which of the following would be classed as an expansionary monetary policy? O A. A decrease in the quantity of money. В. A decrease in interest rates. С. An increase in government taxation. O D. An increase in government expenditure. O E. An increase in VAT.
Following political tensions, Germany's marginal propensity to import from Russia is likely to decrease and its IS curve is likely to shift down. The govermment attempts to avoid an economic downturn Using monetary policy can help with everything except 10 Select one answer O Restoring the previous level of output O Restoring the slope of the IS curve. O Reaching a new and higher level of output O Restoring the previous level of interest rate
When the Fed raises the federal funds rate, the US dollar and net exports O a. appreciates; decreases O b. does not change; decreases Oc does not change; does not change d. appreciates; increases O e. depreciates; decreases
If the government wants to O decrease; contractionary O increase; expansionary O increase; only rules-based O decrease: expansionary the value of its currency in the foreign exchange market, it can use monetary policy.
In a closed economy, if the government wants to increase aggregate demand, it can O increase, increase O increase, decrease O decrease, increase O decrease, decrease government purchases or taxe The nation of Ectenia has long banned the export of its puka shells. A newly elected resident removes the export ban. This change in policy will cause the nation's currency to making the goods Ectenia exports expensive. O appreciate, less O appreciate, more O depreciate, less O depreciate, more
If the Fed raises the federal funds rate so that the exchange rate rises, then imports ________ and exports ________. a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease
If a country's currency depreciates, what would be the effect on the Bala Select one: O a. It becomes flatter. O b. A shift to the right. O c. It becomes steeper. Od. A shift to the left.
The goal of U.S. monetary policy, as conducted by the Federal Reserve (the Fed), is to stabilize the nation's economy. It does this by O regulating the nation's money supply and the cost of borrowing money by adjusting interest rates O establishing a U.S. foreign policy goal to ensure the U.S. economy has a plentiful supply of oil from international markets O establishing more social welfare programs to address the nation's substantial poverty rate O adjusting the nation's taxing and spending policies through the annual fiscal year federal budget
Supply Demand Supply Demand QUANTITY (dolars) These fears would cause the demand for dollars to , and the sup ply of dollars to leading to In the euro/dollar exchange rate. PRICE OF DOLLARS (euros per dollar)
Over the last 10 years, the dollar has depreciated sharply vis-à-vis the euro. Suppose that in the short run the Fed wanted both to defend the dollar (that is, stop its decline and/or cause it to appreciate) and stimulate investment. Can it achieve both of these goals simultaneously through monetary policy? A. Yes, to stimulate investment the Fed will use expansionary policy that will raise interest rates. The higher interest rates will reduce investment into the United States, which will decrease the demand for dollars and cause an appreciation of the dollar. B. No, to stimulate investment the Fed will use expansionary policy that will lower interest rates. The lower interest rates, however, will reduce investment into the United States, which will increase the supply of dollars and cause a depreciation of the dollar. C. No, to stimulate investment the Fed will use expansionary policy that will raise interest rates. The higher interest rates, however, will reduce investment into the…
Question 10 d Anwser only question d please thank you Assume that there is a free-floating exchange rate. Will the following cause sterling toappreciate or depreciate relative to other currencies? In each case, you should considerwhether there is a shift in the demand or supply curves of sterling (or both) and whichway the curve(s) shift(s). You may assume that the impacts are ceteris paribus, that is,everything else remains the same. Illustrate your answers and give a short explanation interms of currency supply and demand.(a) UK imports increase. (b) UK interest rates rise relative to those abroad. (c) The UK experiences lower inflation than other countries, but with no change in interestrates. (d) Forex speculators believe that the Pound sterling will depreciate.
If the Fed lowers the federal funds rate so that the exchange rate falls, then imports ________ and exports ________. a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease