Author Question: If exchange rates are floating, the Fed increasing its target inflation rate will cause the dollar ... (Read 111 times)

jake · **on:** Jun 30, 2018

If exchange rates are floating, the Fed increasing its target inflation rate will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________.

A) appreciate; increase
B) appreciate; decrease
C) depreciate; increase
D) depreciate; decrease

Question 2

Private disposable income is equal to

A) Y + TR + INT - T.
B) Y + NFP + TR + INT - T.
C) Y - TR - INT + T.
D) Y + CA - G.