A country can control
A) its flexible exchange rate.
B) monetary policy oriented toward domestic goals.
C) international capital movements.
D) foreign inflationary policies.
E) and avoid risks in international trade.
B
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Contractual savings institutions include
A) mutual savings banks. B) money market mutual funds. C) commercial banks. D) life insurance companies.
In the open-economy macroeconomic model, if the supply of loanable funds increases, then the interest rate
a. and the real exchange rate increase. b. and the real exchange rate decrease. c. increases and the real exchange rate decreases. d. decreases and the real exchange rate increases.
If the price level in the United States increases relative to prices in foreign countries, then
A. imports and exports of the United States will increase. B. imports and exports of the United States will decrease. C. imports of the United States will decrease and exports of the United States will increase. D. imports of the United States will increase and exports of the United States will decrease.
Suppose the economy has a recessionary gap. By using an expansionary monetary policy, the Fed can
A. raise the price level alone, but cannot increase real GDP. B. raise real GDP and the price level. C. raise real GDP without increasing the price level. D. raise real GDP and decrease the price level.