Which of the following is a possible benefit of international macroeconomic policy coordination?
A. International macroeconomic policy coordination builds a forum where developing countries can come up with a common political agenda.
B. International macroeconomic policy coordination helps stronger countries impose their prescribed economic policies on weaker countries.
C. International macroeconomic policy coordination gives countries the opportunity to consider spillover effects on other countries that arise from interdependence.
D. International macroeconomic policy coordination gives countries the political cover to abolish import tariffs and export taxes.
Answer: C
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Which of the following explains why the aggregate demand curve is downward sloping?
A) the open economy effect B) the real-balance effect C) the interest rate effect D) all of the above
In a second-price sealed-bid auction, ________
A) bidders submit their bids privately B) bidders place their bids one after another C) bidders know each other's bid D) bidders bid above their willingness to pay
The resource market is the same as the product market except that, in the resource market:
a. the demand curve slopes upward. b. the households are the sellers and the firms are the buyers. c. there is no substitution effect. d. the supply curve is perfectly inelastic. e. there is no income effect.
If the multiplier is 4 and autonomous government spending increases by $100 billion, real GDP will:
A. increase by $100 billion. B. increase by $400 billion. C. decrease by $400 billion. D. increase by $25 billion.