Exam 18: Macroeconomic Trends

According to the quantity theory of money,

The opportunity cost of holding money is the

________ increases real GDP.

If the U.S.interest rate differential ________,the demand for dollars ________ and the U.S.exchange rate ________.

The main component of the current account is

If two currencies allow for the equal value of money so that the same bundle of goods cost the same in two countries,there is

Purchasing new capital ________.

If the Fed makes an open market ________ of securities,in the quantity theory M ________ and V ________.

The demand for labor ________ and the accumulated skill and knowledge of human is called ________.

In the foreign exchange market,if the supply of dollars ________ and simultaneously the demand for dollars ________,then the exchange rate definitely ________.

The velocity of circulation is

The major component of the capital and finance account is

An increase in the population will ________ potential GDP,________ employment,and ________ the real wage.

An increase in the amount of capital leads to ________ the aggregate production function and a technological advance leads to ________ the aggregate production function.

If the Fed hikes the U.S.interest rate relative to interest rates in other countries,in the foreign exchange market the demand for dollars will ________,the supply of dollars will ________,and the exchange rate will ________.

An increase in the productivity will ________ potential GDP,________ employment,and ________ the real wage.

When money is accepted as payment in a market transaction,it is functioning as

The ________ growth theory assumes that population growth is not driven by real GDP per person and the ________ growth theory predicts that differences in the economic growth rate can last indefinitely.

If productivity constantly increases,then the real wage rate ________ and employment ________.