When the real interest rate rises in the anchor country, ________
A) expansionary monetary policy will be used to maintain the interest rate peg
B) an economic stimulus is transmitted to pegged economies
C) there will be downward pressure on the value of pegged currencies
D) the anchor currency becomes vulnerable to a speculative attack
C
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By 1910 the top ten industries included printing, malt liquors, tobacco cars and railroad cars. The introduction of these new top ten industries indicated
(a) a shift in consumer preferences toward luxury items. (b) an increase in real incomes in the U.S., permitting people to purchase luxury items. (c) a smaller percentage of total consumption expenditures on essential food, clothing and shelter. (d) all of the above.
A person can cause a negative externality by
a. becoming immunized b. talking loudly in a restaurant c. landscaping her lawn d. paying taxes e. attending school
If (X ? IM) < 0, then capital inflows
A. will be zero. B. will be greater than zero. C. will be less than zero. D. can be zero, positive, or negative.
One factors that limits a poor nation's economic growth is
A. insufficient labor. B. increased urbanization. C. an overabundance of capital formation. D. lack of entrepreneurial ability.