Which of the following is NOT among the pressures imposed by the fixed-rate system on the government of a country that has ongoing international payments deficits?
A. The country faces a limit on its ability to sustain deficits.
B. The country's money supply increases substantially resulting in a higher inflation.
C. The country suffers deterioration in its creditworthiness.
D. If the country cannot sterilize, then its money supply will decrease.
Answer: B
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The supply of loanable funds has a ________ slope because the greater the interest rate, the ________ the reward to saving, and the ________ the quantity of loanable funds supplied
A) positive; lesser; lesser B) negative; lesser; greater C) positive; greater; lesser D) positive; greater; greater
At low levels of employment, the Keynesian aggregate supply curve
a. is downward sloping b. is upward sloping c. is vertical d. is horizontal e. is zero
If consumers cannot readily switch to a close substitute when the price of a good increases, the demand for that good is likely to be:
A. elastic. B. unit elastic. C. perfectly elastic. D. inelastic.
The highest unemployment rate recorded since World War II came in ________
A) September 1929 B) January 1961 C) December 1982 D) October 2009