Author Question: Lower U.S. interest rates cause the value of the dollar to A) fall, making U.S. goods relatively ... (Read 22 times)

lunatika · **on:** Jun 29, 2018

Lower U.S. interest rates cause the value of the dollar to

A) fall, making U.S. goods relatively more expensive on world markets.
B) fall, making U.S. goods relatively cheaper on world markets.
C) rise, making U.S. goods relatively more expensive on world markets.
D) rise, making U.S. goods relatively cheaper on world markets.

Question 2

If disposable income increases from 5 trillion to 6 trillion and, as a result, consumption expenditure increases from 7 trillion to 7.8 trillion, the MPC is

A) 1.0.
B) 6 7 = 0.86.
C) 6 7.8 = 0.77.
D) 5 7 = 0.71.
E) 0.8.