Author Question: Unemployment caused by a contraction in the economy is called: a. frictional unemployment. b. ... (Read 297 times)

asmith134

  • Hero Member
  • *****
  • Posts: 576
Unemployment caused by a contraction in the economy is called:
 a. frictional unemployment.
  b. cyclical unemployment.
 c. structural unemployment.
  d. seasonal unemployment.

Question 2

Explain how each of the following will affect the relative values of the dollar and the euro used in France:  Income growth higher in the United States than in France.  Inflation higher in France than in the United States.  A real interest rate higher in the United States than in France.



maaaaaaaaaa

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

b

Answer to Question 2

Income growth higher in the United States than in France: The increased U.S. income will lead to U.S. consumers buying more French goods. As a result, there will be an increase in the demand for euros causing the euro to appreciate in relation to the dollar. We could also say that the dollar will depreciate relative to the euro.

Inflation higher in France than in the United States: The higher inflation in France will cause a decrease in U.S. consumers' demand for French goods. As a result, there will be a decrease in the supply of dollars leading the dollar to appreciate relative to the euro.

A real interest rate higher in the United States than in France: The higher real interest rate in the U.S. will cause both U.S. investors and French investors to increase their investments in the U.S. The increased French investment in the U.S. will cause an increase in the demand for dollars and an appreciation of the dollar relative to the euro.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

For a complete list of videos, visit our video library