Author Question: Assume that European interest rates fall as a result of decreased deficit spending by the ... (Read 86 times)

tth · **on:** Jun 30, 2018

Assume that European interest rates fall as a result of decreased deficit spending by the governments of the European Union. We would expect all of the following, except:
a. a depreciation of the euro with respect to the U.S. dollar.
b. increased European demand for American government securities.
c. a higher level of U.S. imports from Europe.
d. higher U.S. net exports to Europe.
e. higher French exports to the United States.

Question 2

Which of the following would not cause a change in the supply of milk?
a. an increase in government subsidies to dairy farmers
b. an increase in the price of milk
c. the discovery of growth hormones to stimulate the milk production of cows
d. an increase in the cost of feed for cows