Author Question: When Americans decrease their demand for Japanese goods A) the supply of dollars will fall, and ... (Read 37 times)

naturalchemist · **on:** Jun 29, 2018

When Americans decrease their demand for Japanese goods

A) the supply of dollars will fall, and the demand for yen will fall.
B) the supply of dollars will rise, and the demand for yen will rise.
C) the demand for dollars will rise, and the demand for yen will rise.
D) the demand for dollars will fall, and the demand for yen will rise.

Question 2

Suppose real GDP is 13 trillion, potential real GDP is 13.5 trillion, and Congress and the president plan to use fiscal policy to restore the economy to potential real GDP.

Assuming a constant price level, Congress and the president would need to increase government purchases by
A) less than 500 billion.
B) 500 billion.
C) more than 500 billion.
D) None of the above are correct. Congress must act to decrease government purchases in this case.