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 456 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?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

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.

For a complete list of videos, visit our video library