Under a flexible exchange system, which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
a. an acceleration in the nation's inflation rate
b. a balance of trade deficit
c. a current account deficit
d. a decline in the domestic inflation rate
D
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Give an example of income in the United States that is taxed twice
What will be an ideal response?
The supply of loanable funds curve has a ________ slope and the demand for loanable funds curve has a ________ slope
A) negative; positive B) positive; negative C) negative; negative D) positive; positive E) vertical; horizontal
Bonds with ________ tend to have higher interest rates than bonds with ________
A) high liquidity; low liquidity B) high default risk; low default risk C) shorter maturity; longer maturity D) low tax burdens on their interest; high tax burdens on their interest
Points that lie beneath the production possibilities curve are:
A. unattainable and inefficient. B. attainable but inefficient. C. unattainable but efficient. D. attainable and efficient.