Question and answer
Assume that many households and businesses reduce their spending only because they expect other households and consumers to reduce their spending. Also suppose that all households and consumers would
be better off if they did not reduce their spending. This situation best describes the: A.real-business-cycle theory. B.rational expectations theory.C.idea of coordination failures.D.adaptive expectations theory.
The answer is B.rational expectations theory.
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Original conversation
User: Checkable deposits are classified as money because: A.they can be readily used in purchasing goods and paying debts. B.banks hold currency equal to the value of their checkable deposits.C.they are ultimately the obligations of the Treasury. D.they earn interest income for the depositor.

User: Assume that many households and businesses reduce their spending only because they expect other households and consumers to reduce their spending. Also suppose that all households and consumers would be better off if they did not reduce their spending. This situation best describes the: A.real-business-cycle theory. B.rational expectations theory.C.idea of coordination failures.D.adaptive expectations theory.

Weegy: The answer is B.rational expectations theory.
Expert answered|bongche|Points 1845|

User: Assume that, under a system of floating exchange rates, Mexicans decide to increase their investments in the United States. As a result: A.the peso and the dollar will both depreciate.B.the peso and the dollar will both appreciate.C.the peso will depreciate and the dollar will appreciate.D.the peso will appreciate and the dollar will depreciate.

Weegy: The answer is C.the peso will depreciate and the dollar will appreciate.
Expert answered|bongche|Points 1845|

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Asked 5/7/2012 11:15:10 PM
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Questions asked by the same visitor
Appreciation of the Canadian dollar will: A.intensify an existing disequilibrium in Canada's balance of payments. B.make Canada's exports less expensive and its imports more expensive. C.make Canada's exports more expensive and its imports less expensive. D.make Canada's exports and imports both more expensive.
Weegy: D.make Canada's exports and imports both more expensive. (More)
Question
Expert Answered
Updated 5/8/2012 7:07:58 AM
1 Answer/Comment
Appreciation of the Canadian dollar will: C.make Canada's exports more expensive and its imports less expensive.
Added 5/8/2012 7:07:58 AM
Answer the next question(s) on the basis of the following list of assets: 1. Large ($100,000 and over) time deposits 2. Noncheckable savings deposits 3. Currency (coins and paper money) 4. Small (under $100,000) time deposits 5. Stock certificates 6. Checkable deposits 7. Money market deposit accounts 8. Money market mutual fund balances held by individuals 9. Money market mutual fund balances held by businesses Refer to the above list. Which of the following are considered to be ...
Weegy: The answer is: D User: Assume that Brazil and Mexico have floating exchange rates. Other things unchanged, if the price level is stable in Mexico but Brazil experiences rapid inflation: A.gold bullion will flow into Brazil. B.the Brazilian real will depreciate. C.the Mexican peso will depreciate. D.the Brazilian real will appreciate. Weegy: B.the Brazilian real will depreciate. (More)
Question
Expert Answered
Asked 5/7/2012 10:49:05 PM
0 Answers/Comments
Assume that, under a system of floating exchange rates, Mexicans decide to increase their investments in the United States. As a result: A.the peso and the dollar will both depreciate.B.the peso and the dollar will both appreciate.C.the peso will depreciate and the dollar will appreciate.D.the peso will appreciate and the dollar will depreciate.
Weegy: The answer is C.the peso will depreciate and the dollar will appreciate. User: Answer the next question(s) on the basis of the following information: In 1985, the exchange rate between the U.S. dollar and the Japanese yen was $1 = 262 yen; in 2003, the rate was $1 = 110 yen. Refer to the above information. Which one of the following might be a plausible explanation for the change in the dollar-yen exchange rate from 1985 to 2003? ... (More)
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Expert Answered
Asked 5/7/2012 11:33:39 PM
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