In a flexible exchange rate regime, an increase in the foreign interest rate (i*) will cause
A) the IP curve to shift to the left/up.
B) the IP curve to shift to the right/down.
C) a movement along the IP curve.
D) neither a shift nor movement along the IP curve.
B
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Your electrician accepts payment only in cash in order to avoid taxes. If you pay him $100, ________
A) the GDP of your country will increase B) the GDP of your country will remain unchanged C) the trade surplus of your country will increase D) the GDP of your country will fall
GDP data alluding to the start of a recession in January 2015 was published and analyzed by the Fed in July 2015
The Fed held meetings to formulate a monetary policy to deal with the recession, and then it enacted the chosen policy in September 2015. It was December 2015 before the policy actually began to affect the economy. The three-month period from September 2015 to December 2015 exemplifies a(n) A) recognition lag. B) implementation lag. C) impact lag. D) liquidity lag.
Elasticity rises as price falls along a linear, downward-sloping demand curve
a. True b. False
The term institutions is commonly used to refer to:
A. government bodies. B. development agencies. C. international groups. D. All of these statements are true.