Dollarization refers to:
a. increased trade with the United States, resulting in a glut of dollars circulating in the domestic economy
b. the fall of the U.S. dollar.
c. the dominance of the U.S. dollar in international finance.
d. the adoption of any foreign currency as an official currency by nations outside the United States, such as El Salvador and Ecuador.
Answer: d. the adoption of any foreign currency as an official currency by nations outside the United States, such as El Salvador and Ecuador.
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Increases in the quantity of money can start a ________ inflation, and an increase in government expenditure can start a ________ inflation
A) demand-pull; demand-pull B) demand-pull; cost-push C) cost-push; cost-push D) cost-push; demand-pull E) None of the above is correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.
Buying a newly issued bond implies:
a. borrowing money from a private bank. b. taking over the ownership of the issuing firm. c. lending money to the issuing firm. d. paying the price for a service rendered by the issuing firm. e. borrowing funds from international organizations.
According to the text, which of the following does the United States import?
A. Electronics, cars, and food. B. Computers but not food. C. Cars but not shoes. D. Clothes but not electronics.
There is some misunderstanding of the WTO's provisions for environmental protection in trade. The WTO actually:
a. allows nations to bar all imports from nations that do not conform to their own standards. b. provides that nations may enforce any standards for particular products as long as the standards apply equally to domestic producers and importers. c. does not make any pretense of caring at all about the environment. d. is very inconsistent in its rulings.