The government of country A has decided to maintain an exchange rate of 1 unit of its currency for 6 U.S. dollars in the long run. Country A can be said to have a:
A) managed exchange rate system. B) fully flexible exchange rate system.
C) nominal exchange rate system. D) fixed exchange rate system.
D
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Consumption functions would shift downward if
A. disposable incomes fall. B. disposable incomes rise. C. price levels fall. D. price levels rise.
Suppose that most government spending was on capital goods that contribute to economic growth. How would that affect the Ricardian equivalence debate?
What will be an ideal response?
When a government earns more than it spends in revenue, we say that it has a:
A. budget surplus. B. budget deficit. C. federal debt. D. federal deficit.
History has shown that over the long run, labor-saving technology has actually not reduced employment
a. True b. False Indicate whether the statement is true or false