Expenditure-switching policies designed to improve a current account deficit
A) turn domestic spending towards domestic goods.
B) reduce the overall level of demand in the economy.
C) turn domestic spending towards foreign goods.
D) increase the overall level of demand in the economy.
A
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Which of the following will change the position of the IS curve?
A) An increase planned investment spending B) An increase in interest rates C) An increase in money demand D) An increase in the money supply
A mortgage that allows the borrower to choose the monthly payment for a few years is a
A. credit-default swap. B. "liar loan." C. pay-option adjustable-rate mortgage. D. traditional, thirty-year fixed-rate mortgage.
If there is no comparative advantage in the production of either of the two goods produced by countries 1 and 2, then
A) the benefits resulting from trade between the two countries are increased. B) there are no gains from specialization and trade between the two countries. C) one country must be more productive in producing all goods than the other. D) each country should specialize in the production of a particular good. E) none of the above
When expected inflation increases, for any given nominal interest rate the:
A. real interest rate increases. B. cost of borrowing decreases and the desire to borrow increases. C. cost of borrowing increases and the desire to borrow decreases. D. bond supply curve shifts to the left.