Posted: July 20th, 2016

Everything else being the same, if inflation goes up in the US?

16 A strong currency
a is harmful to the economy
b facilitates exports
c facilitates imports
d is trade neutral
17 If a government does nothing to stem its currency value decline in international
markets,

a it is probably aiming at reducing unemployment at home
b it is probably because of an incompetent government that does not understand economics
c it is probably because the government wants to encourage imports
d none of the above
18 Everything else being the same, if inflation goes up in the US,
a the dollar exchange rate against other currencies will go up
b the dollar exchange rate against other currencies will go down
c the dollar exchange rate against other currencies will remain unchanged.
d None of the above
19 Economists advocate free trade because
a trade restrictions lower aggregate output
b trade restrictions reduce international competition
c there could be harmful trade wars
d all of the above
20 Demand primarily includes
a want, need and necessity
b the ability to buy and necessity
c the ability and willingness to buy
d none of the above