in the 33. Inflation is a phenomenon and can be expressed as the relationship be
ID: 1108655 • Letter: I
Question
in the 33. Inflation is a phenomenon and can be expressed as the relationship between equation of exchange. A) monetary. (aMOV)-(Peonstant)( Y) B) monetary, (+AMXVconstant)-+&PKYcomstant;) C) legal, the Federal Reserve and the treasury D) fiscal, (+AMKV)+APKY constant) Gieorge purchased yen at 138Y to the S. He hopes to make money in six mosths as he A) The dollar to weaken against the yen B) The yen to weaken against the dollar C) Counter trade policy to work in his favor D) Selling the yen for fewer dollars will make him rich 34. 35. In the context of regional trade integration, concems about arise because close economic integration demands that countries give up some degree of their control over such key policy issues as monetary policy, fiscal policy, and trade policy A) cost B) cultural uniformity C) financial stability D) national sovereignty 36. As discussed in lecture, an economy can withstand a falling currency value and moderately rising inflation much more easily if A) Growth is exactly on trend. B) Growth is substantially below trend, since the stimulus that inflation provides is welcome. C) Growth is substantially above trend, since the currency effects fall in line with a central bank's likely action. D) An economy is never better off with a falling currency E) None of the above is correct 37. Most economic theories suggest that three important factors have an impact on future exchange rate movements in a country's currency. These factors are A) the country's rate of economic growth,its participation in the World Trade Organization, and its economy policy B) the country's rate of GDP, its unemployment rate, and its economic policy C) the country's participation in the World Trade Organization, its monetary policy, and its market psychology D) the country's price in lation, its interest rate, and is market pychology 38. The two main reasons that have made economic integration difficult to achieve are A) concems over the safety of travel from one nation to another and concems over dissimilar political B) concerns over costs and concerns over national sovereignty C) concerns over immigration and emigration and concerms over economic and political D) concerns over the safety of travel from one nation to another and concens over national sovereign ideologiesExplanation / Answer
Answer: A
Explanation: It is a monetary policy. For the short-run, in the equation of exchange, the velocity "V " is not constant, Hence, changes in the money supply (M) could affect the the income level.
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