A nation's account with the International Monetary Fund denominated in special drawing rights is
A. the account at the World Bank.
B. portfolio investment.
C. the account at the Fed.
D. the quota subscription.
Answer: D
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If the economy is in recession, explain what advice you would give the President, if you were a monetarist economist. What if you were a Keynesian?
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending in the context of the
Three-Sector-Model? a. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same. e. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
The shape of the _____ curve determines the impact of an aggregate demand shift on prices and output.
A. Marginal revenue B. Total cost C. Production possibilities D. Aggregate supply
According to Keynes, the classical model could not explain
A. periods of rising unemployment. B. a recession or depression. C. a long-term economic decline. D. periods of rising interest rates.