Everything else held constant, an increase in net exports ________ aggregate ________
A) increases; demand
B) decreases; demand
C) decreases; supply
D) increases; supply
A
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All of the following actions were taken by the Thai government to help Thailand maintain its peg against the dollar in the 1990s except
A) imposing restrictions on exports to the United States to prevent too many dollars from entering the economy. B) borrowing dollars from the International Monetary Fund in exchange for baht. C) increasing domestic interest rates to attract more foreign investors. D) buying baht on the foreign exchange market to support higher demand for the baht.
When a country establishes one rate as the exchange rate, but allows their currency to fluctuate within a certain percentage of that value, it is said to have
A) parity bands. B) dollarized. C) a currency basket. D) a pegged currency.
How would the imposition of tariffs on imported leather boots be likely to affect domestic boot manufacturers?
a. Foreign competition would increase. b. Prices for domestic boots will be lower. c. Boot prices will rise and sales increase. d. Imports will outsell domestic boots.
The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.