Suppose the United States is entering a recession at the same time that it has agreed to work toward eliminating its trade deficit. Considering the effect of monetary policy on trade through its impact on income only:
A. a contractionary monetary policy would be the appropriate means of achieving both objectives.
B. an expansionary monetary policy would be appropriate to eliminate the trade deficit, but contractionary monetary policy is called for to deal with the recession.
C. a contractionary monetary policy would be appropriate to eliminate the trade deficit, but expansionary monetary policy is called for to deal with the recession.
D. an expansionary monetary policy would be the appropriate means of achieving both objectives.
Answer: C
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According to the Application, Singapore requires workers who are under 50 years of age to save ________ percent of their earnings, with employers contributing another ________ percent
A) 50; 30 B) 20; 15.5 C) 10; 10 D) 40; 20
Using an equation, explain why governments prefer to avoid excessive current account surpluses?
What will be an ideal response?
If you earn and spend $2,000 per month and maintain an average cash balance of $500 per month, your velocity of money is
A) $1,250. B) 2. C) 4. D) $1,500.
If a change in tastes is in favor of a commodity, that will mean a:
a. Movement down the demand curve b. Movement up the demand curve c. Shift in the whole demand curve to the left d. Shift in the whole demand curve to the right