A system in which governments intervene in foreign exchange markets to limit but not eliminate exchange rate fluctuations is referred to as
A. Balance-of-payments exchange rates.
B. Managed exchange rates.
C. Speculative exchange rates.
D. Marginal exchange rates.
Answer: B
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Double counting occurs when:
A) inputs are included in the calculation of the gross domestic product. B) household production is included in the calculation of the gross domestic product. C) depreciation is included in the calculation of the gross domestic product. D) unsold inventories are included in the calculation of the gross domestic product.
If a French company exports $2 million of machinery to Italy and French tourists spend $2 million at Italian beaches, the Italian current account balance ________, and the Italian financial account balance ________
A) rises; rises B) rises; is unchanged C) is unchanged; is unchanged D) is unchanged; rises
The World Bank was formed in
A) 1930. B) 1960. C) 1945. D) 1918.
Gross domestic product will always increase when
a. prices rise and output falls b. prices fall and output rises c. prices fall and output falls d. prices rise and output rises e. only when prices rise, regardless of output changes