The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates.
B. currency convertibility observed in most developing countries.
C. domestic macroeconomic policy, arising from a shortage of international reserves.
D. macroeconomic policy resulting from IMF conditionality.
Answer: C
You might also like to view...
A car insurance company pays 90% of the total damage in case of an accident. This is an example of ________
A) a coinsurance B) a dividend C) a brokerage D) a subsidy
Economic growth requires
A) private foreign investment. B) domestic budget deficits. C) investment in human capital. D) governance according to the will of whoever is in charge.
Figure 11-3
?
In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in fixed taxes?
A. C1 in graph (a) B. C2 in graph (a) C. C1 in graph (b) D. C2 in graph (b)
The prevailing budget philosophy prior to Keynes called for a balanced budget. Keynes argued that the government should not balance its budget but instead have budget deficits during
a. economic booms. b. during periods of peace but surpluses during periods of war. c. periods of inflation. d. economic recessions.