If U.S. securities pay 6 percent interest, and if Great Britain's securities pay 8 percent interest, then
a. pounds depreciate relative to dollars.
b. pounds appreciate relative to dollars.
c. Great Britain's imports will fall.
d. Great Britain's exports will rise.
b
You might also like to view...
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
A binding price ceiling (i) causes a surplus. (ii) causes a shortage. (iii) is set at a price above the equilibrium price. (iv) is set at a price below the equilibrium price
a. (ii) only b. (iv) only c. (i) and (iii) only d. (ii) and (iv) only
What are the different types of trade barriers? What are the arguments for trade barriers? What are the consequences of trade barriers?
What will be an ideal response?
Discuss the major differences between classical and Keynesian economists. Be sure to explain how they differ with regard to how quickly equilibrium is restored in the economy as well as what role they see for government action in restoring equilibrium.
What will be an ideal response?