Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: magmichele12 on Jul 1, 2018
-
A sudden rise in the market demand in a competitive industry leads to
a. A market equilibrium price higher than the original equilibrium in the short-run
b. A market equilibrium price equal to the original equilibrium in the long-run
c. Both a and b
d. None of the above
Question 2
If Janet Yellen, Chair of the Federal Reserve Board, begins to tighten monetary policy by raising US interest rates next year, what is the likely impact on the value of the dollar?
a. The value of the dollar falls when US interest rates rise.
b. The value of the dollar rises when US interest rates rise.
c. The value of the dollar is not related to US interest rates.
d. This is known as Purchasing Power Parity or PPP.
e. The Federal Reserve has no impact at all on interest rates.
-
Answer to Question 1
c
Answer to Question 2
b