Expansionary monetary policy tends to:
A. lower U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar.
B. raise U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.
C. raise U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar.
D. lower U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.
Answer: C
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The largest component of GDP is
a. tax revenue b. government purchases of goods and services c. the nation's capital stock d. private investment spending e. private consumption expenditures
Which of the following is the most likely side effect of an increase in the relative size of the underground economy with the passage of time?
a. The growth rate of real GDP will tend to understate the growth rate of total output. b. The growth rate of real GDP will tend to overstate the growth rate of total output. c. The GDP deflator will tend to overstate any increase in inflation. d. The GDP deflator will tend to understate any increase in inflation.
When a country's current account balance is added to its capital account balance, the sum should be:
A. positive. B. zero. C. negative. D. twice the current account.
A government is running a budget surplus if:
A. government revenue is less than government spending. B. imports exceed exports. C. government revenue exceeds government spending. D. exports exceed imports.