Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and reserves account in the context of the Three-Sector-Model?
a. The GDP Price Index rises and reserves account becomes more negative (or less positive)
b. The GDP Price Index falls and reserves account remains the same.
c. The GDP Price Index and reserves account remain the same.
d. The GDP Price Index rises and reserves account remains the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.A
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In March 2018, the United States filed a formal complaint with the World Trade Organization (WTO) alleging that China
A. violated restrictions on Chinese direct investment in the United States. B. engaged in unfair policies and practices regarding intellectual property rights. C. failed to comply with U.S. import licensing requirements. D. was dumping goods on U.S. markets.
If new firms enter a monopolistically competitive market, the demand curves for the existing firms will shift to the
A. Right, and there will be no change in price elasticity. B. Left and become more price-inelastic. C. Left and become more price-elastic. D. Left, and there will be no change in price elasticity.
In a closed economy, private saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y + TR - C - T B) Y - C - T C) Y - G - T + TR D) Y - G - T
If the bidders at an oral auction have true values of $78, $72, $66, and $65, the item will sell for
a. $78 b. just under $78 c. $72 d. just over $72