At each value of the domestic interest rate, increases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.
A. increase; decrease; increase
B. decrease; increase; decrease
C. increase; increase; decrease
D. increase; increase; increase
Answer: B
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The figure above shows the market supply and market demand curves for pizza. If the market is at its equilibrium, what area in the graph above represents:
a) consumer surplus? b) producer surplus?
Since the War on Poverty was started in 1965, the United States has spent more than $12 trillion on income maintenance programs. The effect has been to
A) reduce poverty levels substantially. B) reduce poverty levels moderately. C) have virtually no effect on poverty levels. D) increase poverty substantially.
If an economy wants to maintain monetary policy autonomy, then:
a. it can maintain a fixed exchange rate and international capital mobility. b. it can impose strict capital controls and maintain a fixed exchange rate. c. it can maintain capital mobility but not a fixed exchange rate. d. it can impose strict capital controls and maintain a fixed exchange rate or it can maintain capital mobility but not a fixed exchange rate.
The International Monetary Fund (IMF) was created as a part of the
A. gold standard. B. managed floating system. C. Bretton Woods agreement. D. free-float arrangement.