Which of the following would cause a currency to depreciate in a flexible exchange rate market?
a) Rising domestic interest rates.
b) Reduced demand for imported goods.
c) Increased investment abroad.
d) A surge in foreign demand for a country's goods.
Ans: c) Increased investment abroad.
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Mutual funds are diversified financial instruments that represent a large number of stocks, bonds, and/or other financial assets
Indicate whether the statement is true or false
When fiscal policy makers wish to reduce aggregate demand, they could enact:
A. contractionary monetary policy. B. expansionary monetary policy. C. contractionary fiscal policy. D. expansionary fiscal policy.
Which one of the following macroeconomic theories is most closely associated with the Laffer curve?
A. Monetarism B. New classical economics C. Keynesian economics D. Supply-side economics
Stagflation is the simultaneous occurrence of substantial unemployment and inflation.
Answer the following statement true (T) or false (F)