Under a fixed exchange rate regime, an expansionary fiscal policy would ____ interest rates and GDP, which would cause ____ pressure on the exchange rate, forcing the monetary authority to undertake a(n) ______ monetary policy.
A) raise; downward (appreciation); expansionary
B) lower; upward (depreciation); contractionary
C) raise; upward (depreciation); contractionary
D) lower; downward (appreciation); expansionary
Ans: A) raise; downward (appreciation); expansionary
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Which of the following is NOT a cost of inflation?
A) uncertainty cost B) confusion cost C) tax cost D) unemployment cost E) shoe-leather cost
The V in the equation of exchange represents the:
a. variation in the GDP. b. variation in the CPI. c. variation in real GDP. d. average number of times per year a dollar is spent on final goods and services.
Because of transactions which take place in the underground economy, the
a. GDP calculation tends to overstate the actual value of goods sold in the economy. b. GDP calculation tends to accurately portray the value of goods sold in the economy. c. GDP calculation tends to understate the actual value of goods sold in the economy. d. value of the GDP calculation will be equal to the value of the national income calculation. e. value of the GDP calculation through the expenditure approach will be greater then the value calculated through the income approach.
The regulatory agency with oversight responsibility for the pharmaceutical industry is(are) the:
a. Health Care Financing Administration. b. the National Institutes for Health. c. the Federal Emergency Medical Administration. d. the Centers for Disease Control. e. the Food and Drug Administration.