For this question assume that the Fed conducts expansionary monetary policy in an open economy. Given this information, answer the following questions.
1) Would the US dollar appreciate, depreciate, or remain unchanged?
2) Would US exports increase, decrease, or remain unchanged?
3) Would US imports increase, decrease, or remain unchanged?
4) Would US net exports (NX) increase, decrease, or remain unchanged?
5) Is monetary policy more or less effective in an open economy?
For this question assume that the Fed conducts expansionary monetary policy in an open economy. Given this information, answer the following questions.
1) Would the US dollar appreciate, depreciate, or remain unchanged?
2) Would US exports increase, decrease, or remain unchanged?
3) Would US imports increase, decrease, or remain unchanged?
4) Would US net exports (NX) increase, decrease, or remain unchanged?
5) Is monetary policy more or less effective in an open economy?
Related textbook solutions
Related questions
21. The basic policy-making body in the US banking system is the:
| Ā | Council of Economic Advisors. |
| Ā | Board of Governors of the Federal Reserve. |
| Ā | Federal Open Operations Committee (FOOC) |
| Ā | Federal Monetary Authority. |
| Ā | Joint Economic Agency. |
22. The business cycle will alternate if two or more of the components of aggregate demand decrease or increase spending.
| Ā | True |
| Ā | False |
23. An increase in imports will increase the US aggregate supply.
| Ā | True |
| Ā | False |
24. An increase in the price of an imported resource will cause,
| Ā | The Aggregate supply curve to shift to the left |
| Ā | The aggregate supply curve to remain the same. |
| Ā | The economy to operate in the long-run |
| Ā | The Aggregate supply curve to shift to the right |
| Ā | a movement along the aggregate supply curve |
25. If a banks demand deposits (checking accounts) are $100,000 at a time when the required reserve ratio is 20% the bank's actual reserves is,
| Ā | $20,000 |
| Ā | $120,000 |
| Ā | $100,000 |
| Ā | $60,0000 |
| Ā | $80,0000 |
