On the next day (see Question 43) it costs $0.845 U.S. to buy one Canadian dollar. From
this information we can conclude that
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The U.S. dollar got weaker and U.S. exports will rise
If debit cards become more widely used by consumers and businesses, which of the
following is most likely to happen?
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, less money will be held as currency and more money will be held in bank
accounts, which will increase the reserves of banks unless the Fed takes
offsetting actions
(money flows to banks rather than as currency)
(debit card usage reduces transaction costs, increasing transparency and
improving efficiency in the flow of goods and services)
How does a barter economy different from a money economy?
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A barter economy involves higher costs for each transaction, as capital can
depreciate quickly unlike money and goods include production costds
What does the consumer price index measure?
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The change in the cost of a select market of goods and services
Suppose that the Fed decides to decrease the growth rate of the money supply in the
U.S. What is most likely to happen to the U.S. trade deficit, and to GDP?
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, The trade deficit will rise, GDP will fall
(A decrease in the money supply will lead to a decrease in the amount of
money that people and firms will hold and as a result they will spend less. This
will cause aggregate demand to decrease.
Which of the following will most likely occur during the expansionary phase of the
business cycle?
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Real GDP rises and unemployment falls
(Expansion is the phase of the business cycle when the economy moves from
a trough to a peak. It is a period when the level of business activity surges and
gross domestic product (GDP) expands until it reaches a peak. A period of
expansion is also known as an economic recovery.)
Which of the following best illustrates the difference between GDP and GNP?
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this information we can conclude that
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The U.S. dollar got weaker and U.S. exports will rise
If debit cards become more widely used by consumers and businesses, which of the
following is most likely to happen?
Give this one a try later!
, less money will be held as currency and more money will be held in bank
accounts, which will increase the reserves of banks unless the Fed takes
offsetting actions
(money flows to banks rather than as currency)
(debit card usage reduces transaction costs, increasing transparency and
improving efficiency in the flow of goods and services)
How does a barter economy different from a money economy?
Give this one a try later!
A barter economy involves higher costs for each transaction, as capital can
depreciate quickly unlike money and goods include production costds
What does the consumer price index measure?
Give this one a try later!
The change in the cost of a select market of goods and services
Suppose that the Fed decides to decrease the growth rate of the money supply in the
U.S. What is most likely to happen to the U.S. trade deficit, and to GDP?
Give this one a try later!
, The trade deficit will rise, GDP will fall
(A decrease in the money supply will lead to a decrease in the amount of
money that people and firms will hold and as a result they will spend less. This
will cause aggregate demand to decrease.
Which of the following will most likely occur during the expansionary phase of the
business cycle?
Give this one a try later!
Real GDP rises and unemployment falls
(Expansion is the phase of the business cycle when the economy moves from
a trough to a peak. It is a period when the level of business activity surges and
gross domestic product (GDP) expands until it reaches a peak. A period of
expansion is also known as an economic recovery.)
Which of the following best illustrates the difference between GDP and GNP?
Give this one a try later!
