In a country with floating exchange rates and high capital mobility, an increase in government spending will be
A) less effective than with low capital mobility.
B) highly effective.
C) not effective at all.
D) harmful to the growth of real incomes.
A
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Demand-pull inflation occurs
A) when the aggregate supply curve shifts to the right, while aggregate demand remains stable. B) when the aggregate demand curve shifts to the right, while aggregate supply remains stable. C) when the aggregate demand curve shifts to the left, while aggregate supply remains stable. D) when the aggregate supply curve shifts to the left, while aggregate demand remains stable.
Refer to Figure 8A.1. When the economy reaches K, total saving is represented by point ________ and depreciation is represented by point ________
A) Y; e B) Y; Y C) e; e D) e; Y
A rise in the average productivity of labor
a. always reflects technical progress. b. reflects technical progress if other input usage hasn't changed. c. reflects technical progress only if labor input hasn't changed. d. reflects technical progress only if the quantity of output is increased.
If labor markets are competitive, discriminating employers
a. will have to pay higher wages since the available labor supply is smaller. b. will have higher costs and therefore be at a competitive disadvantage. c. will be driven out of business by nondiscriminators. d. All of the above are true.