When the central banks of various countries intervene in the foreign exchange market to maintain an exchange rate, this type of exchange rate system is called a ________ exchange rate system
A) fixed
B) flexible
C) all of the above
D) none of the above
A
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Keynesian economics endorsed the idea of
(a) increased government spending as a counterforce against slumps or recessions. (b) reduced taxation as a counterforce against rising prices. (c) increased government spending as a counterforce against inflation. (d) decreased government spending as a counterforce against slumps or recessions.
Antitrust risks from vertical integration are usually ______than those from horizontal integration
a. Higher b. Lower c. About the same as d. None of the above
If a good is inferior and its price increases,
a. the income effect will be positive and the substitution effect will be positive. b. the income effect will be negative and the substitution effect will be negative. c. the income effect will be positive and the substitution effect will be negative. d. the income effect will be negative and the substitution effect will be positive.
A country that wants to increase its exchange rate to a higher level than the market exchange rate dictates would most likely adopt:
A. contractionary monetary policy. B. contractionary fiscal policy. C. expansionary fiscal policy. D. expansionary monetary policy.