Which of the following would lead to an increase in the demand for British pounds?

Select one:

a.A decrease in the exchange rate.

b.A decrease in the U.S. interest rate relative to the British interest rate

c.A declining interest in British goods

d.Expectations that the exchange rate will fall

e.A decrease of the U.S. price level relative to the British price level

The outcome of monetary policy can never be certain because

Select one:

a.the concept of a natural rate of unemployment is still not accepted by all policy makers

b.the natural rate of unemployment lags behind the actual rate of unemployment

c.the slope of the AS curve is never clear

d.time lags disrupt policy planning

e.unemployment is always changing

The national debt

Select one:

a.exists because of past government budget deficits

b.is a flow variable

c.is the amount households owe on credit cards, mortgages and other loans

d.is the difference between the government's spending and revenue in a given year

e.is the same as the government's budget deficit

The aggregate production function is the relationship between the

Select one:

a.total cost of labor and the total real cost of inputs

b.quantity of labor and the quantity of capital

c.quantity of labor employed in the economy and the total quantity of output produced

d.cost of labor and the supply of labor

e.total cost of labor and the quantity of output in the economy

If there is an excess supply of the domestic currency at a fixed exchange rate,

Select one:

a.the currency will appreciate

b.the central bank must be up that excess supply or the exchange rate will rise

c.the currency will undergo a devaluation

d.the country must switch to a floating exchange rate

e.the central bank must buy up that excess supply or the exchange rate will fall