Under the current managed float exchange rate regime, countries with balance of payments deficits frequently do not want to see their currencies depreciate because it makes ________ goods more expensive for ________ consumers and can stimulate
inflation. A) foreign; foreign
B) foreign; domestic
C) domestic; foreign
D) domestic; domestic
B
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Restrictive covenants
A) generally require that firms use debt finance rather than equity finance. B) generally require that firms use equity finance rather than debt finance. C) put restrictions on the use of borrowed funds. D) were outlawed under the Civil Rights Act of 1964.
How long is the long run?
In classifying expenditures, which of the following is an illustration of an “object”?
A. Arson investigation B. Fire Department C. Materials and supplies D. Public Safety
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A