To derive the external balance relationship under high capital mobility and floating exchange rates, an increase in government spending must be followed by
A) an increase in money stock to restore the balance of payments equilibrium.
B) a decrease in money stock to restore the balance of payments equilibrium.
C) a depreciation of the currency to restore the balance of payment equilibrium.
D) a decrease in investment spending to restore the balance of payments equilibrium.
A
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Using demand and supply curves for the Japanese yen based on the $/¥ price for yen, an increase in US INFLATION RATES would
a. Decrease the demand for yen and decrease the supply of the yen. b. Increase the demand for yen and decrease the supply of the yen. c. Increase the demand and increase the supply of yen. d. Decrease both the supply and the demand of yen. e. Have no impact on the demand or supply of the yen.
The economic life cycle describes how young people usually have higher savings rates than middle-aged people
a. True b. False Indicate whether the statement is true or false
The most common measure of productivity is output per
A. Labor-hour. B. Capita. C. Human capital. D. GDP.
If the government imposes a price floor that is higher than the market clearing price, then
A. both consumer surplus and producer surplus will stay the same. B. consumer surplus will decrease while producer surplus will increase. C. both consumer surplus and producer surplus will decrease. D. both consumer surplus and producer surplus will increase.