Under a system of fixed exchange rates where the foreign exchange market is in equilibrium and neither country has a balance-of-payments deficit or surplus, an increase in imports of French goods by Japanese consumers, ceteris paribus, would result in a

A. Market surplus of francs.
B. Balance-of-payments deficit for Japan.
C. Balance-of-trade deficit for France.
D. Balance-of-payments surplus for Japan.


Answer: B

Economics

You might also like to view...

A government policy of providing free public education is an example of a policy to promote economic growth by:

A. increasing the availability of natural resources. B. increasing physical capital. C. improving technology. D. increasing human capital.

Economics

The National Bureau of Economic Research is

A. funded by the Federal Reserve Banks and analyzes the banking system. B. funded by Congress and evaluates the budget appropriations. C. a nonprofit organization and evaluates the U.S. monetary policy. D. a nonprofit organization and evaluates the business cycles.

Economics

The O in OLI theory stands for ownership, and the asset owned can be tangible or intangible

Indicate whether the statement is true or false

Economics

The total factor productivity of railroads increased dramatically in the antebellum period. All of the following factors are responsible for the increase in productivity except:

a. standardization of the gauge of railroad tracks. b. the introduction of refrigerated railroad cars. c. increased size of railroad cars. d. increased use of existing capital.

Economics