A reason why fixed exchange rate systems might lower growth is that
A) inflation may be higher.
B) monetary policy cannot be used.
C) they are more risky.
D) they deter international trade.
B
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An income tax on labor income decreases the ________ of potential GDP, and a tax on interest income decreases the ________ of potential GDP
A) growth rate; growth rate B) level; level C) growth rate; level D) level; growth rate E) None of the above answers is correct.
With the increasing normalization of relations with China, more and more Chinese goods appear on the U.S. market. Haven't you noticed it? If we buy more from China than China buys from us, then
a. the Chinese currency (the yuan) appreciates and we have an unfavorable balance of trade with China b. the Chinese currency (the yuan) depreciates and we have an unfavorable balance of trade with China c. the Chinese currency (the yuan) appreciates and we have a favorable balance of trade with China d. our balance of payments becomes increasingly negative e. our balance of payments becomes increasingly positive
In 2009 __________ agreed to pay $2.3 billion to settle civil and criminal allegations that it had illegally marketed its painkiller, Bextra.
Fill in the blank(s) with the appropriate word(s).
To increase output the government could
A. adopt policies that discourage immigration and increase government spending. B. adopt policies that encourage immigration and decrease government spending. C. adopt policies that encourage technological advancement and increase government spending. D. adopt policies that discourage technological advancement and decrease government spending.