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Economics
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13 Dec 2019

When the Fed raises the federal funds rate, the exchange rate ________ and net exports ________. A) increases; decreases B) decreases; decreases C) does not change; decreases D) does not change; does not change E) increases; increases

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Hubert Koch
Hubert KochLv2
17 Dec 2019
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Related questions

Equilibrium price must decrease when demand:

a. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously.

b.increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously.

c.decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously.

d.decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously

When the Fed buys government bonds,

A) The money supply increases and the federal funds rate increases

B) The money supply increases and the federal funds rate decreases.

C) The money supply decreases and the federal funds rate increases

D) The money supply decreases and the federal funds rate decreases.

When an economy experiences inflation, the value of money _______________.
A. increases.
B. initially decreases but then increases.
C. initially increases but then decreases.
D. does not change.
E. decreases.
 

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