This topic contains a solution. Click here to go to the answer

Author Question: If the Fed increases the money supply to fight recession, a floating exchange rate will aid the Fed ... (Read 424 times)

cdr_15

  • Hero Member
  • *****
  • Posts: 546

Question 1

Monetary policies are


◦ less effective when the exchange rate is flexible and the economy is open.
◦ more effective when the exchange rate is flexible and the economy is open.
◦ more effective when the exchange rate is flexible and the economy is closed.
◦ less effective when the exchange rate is fixed and the economy is open.

Question 2

If the Fed increases the money supply to fight recession, a floating exchange rate will aid the Fed in fighting recession because


◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will rise and the price of U.S. imports will fall.
◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports will fall and the price of U.S. imports will rise.
◦ as the money supply is increased, the interest rate will decrease, and the price of both U.S. exports and U.S. imports will fall.
◦ as the money supply is increased, the interest rate will decrease, and the price of U.S. exports and U.S. imports will rise.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by cdr_15 on Apr 19, 2019

angrybirds13579

  • Sr. Member
  • ****
  • Posts: 344
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 56% of students answer this correctly






 

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

For a complete list of videos, visit our video library