When the exchange rate, E, and the foreign price level, P*, is fixed, domestic inflation depends primarily on
A) amount of aggregate demand.
B) home price level set by IMF.
C) current account balance.
D) government tax policy.
E) foreign interest rates.
A
You might also like to view...
If an American firm opens a production facility in India, the total value of the production will be included in the
A) national income of the United States. B) gross domestic product of India. C) gross domestic product of the United States. D) national income of India.
Which of the following did the 1986 Tax Reform Act not intended to do?
a. lower marginal tax rates b. broaden the tax base c. keep average tax rates the same d. reduce the bias towards saving
Which of the following is an example of trade policy at the national level?
a. Congress passing legislation to prevent dumping. b. The European Union adopting a common currency c. The World Trade Organization holding a round of negotiations in France. d. The General Agreement on Tariffs and Trade being made.
A profit-seeking decision maker who decides which business projects to undertake and how they should be undertaken is called
a. a key man. b. an entrepreneur. c. a progressor. d. a stakeholder.