Under a floating exchange-rate regime with a high degree of capital mobility, international crowding out of expansionary fiscal policy occurs when
A. foreign interest rates increase.
B. the country's currency appreciates.
C. the foreign money supply increases.
D. domestic interest rates increase.
Answer: B
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Some call the Great Recession the:
A. period when the economy does not grow for four consecutive quarters. B. recession that began in 2007 due to the decline in consumer spending when the housing bubble burst. C. period of high inflation that took place in the early 1970s. D. period of economic stagnation that took place in the early 1990s.
The principle of comparative advantage
A. applies only when the gold standard is in effect. B. is the basic reason that the United States has been running trade deficits. C. states that it is advantageous to export more than you import. D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.
A currency support policy consists of the:
A. selling of a currency to maintain its value above its short-term equilibrium value. B. buying of a currency to maintain its value above its long-term equilibrium value. C. selling of a currency to offset fluctuation in supply and demand for the currency. D. buying of a currency to maintain its value below its long-term equilibrium value.
The productivity slowdown in the United States can be explained by the use of social media, many are used for personal enjoyment rather than industrial productivity.
Answer the following statement true (T) or false (F)