Questions from Macroeconomics

Q: If a cup of coffee costs 2 euros in Paris and $

If a cup of coffee costs 2 euros in Paris and $6 in New York and purchasing-power parity holds, what is the exchange rate? a. 1/4 euro per dollar b. 1/3 euro per dollar c. 3 euros per dollar d. 4 euro...

Q: Would each of the following groups be happy or unhappy if the

Would each of the following groups be happy or unhappy if the U.S. dollar appreciated? Explain. a. Dutch pension funds holding U.S. government bonds b. U.S. manufacturing industries c. Australian tour...

Q: What might motivate a central banker to cause a political business cycle

What might motivate a central banker to cause a political business cycle? What does the political business cycle imply for the debate over policy rules?

Q: If the Fed started printing large quantities of U.S.

If the Fed started printing large quantities of U.S. dollars, what would happen to the number of Japanese yen a dollar could buy? Why?

Q: A civil war abroad causes foreign investors to seek a safe haven

A civil war abroad causes foreign investors to seek a safe haven for their funds in the United States, leading to ________ U.S. interest rates and a ________ U.S. dollar. a. higher, weaker b. higher,...

Q: Describe supply and demand in the market for loanable funds and the

Describe supply and demand in the market for loanable funds and the market for foreign-currency exchange. How are these markets linked?

Q: Suppose the French suddenly develop a strong taste for California wines.

Suppose the French suddenly develop a strong taste for California wines. Answer the following questions in words and with a diagram. a. What happens to the demand for dollars in the market for foreign...

Q: Stagflation is caused by a. a leftward shift in the

Stagflation is caused by a. a leftward shift in the aggregate-demand curve. b. a rightward shift in the aggregate-demand curve. c. a leftward shift in the aggregate-supply curve. d. a rightward shift...

Q: Explain why the following statements are false. a. “

Explain why the following statements are false. a. “The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods.” b. “The long-run aggregate-s...

Q: List and explain the three theories for why the short-run

List and explain the three theories for why the short-run aggregate-supply curve slopes upward.