The need for exchange controls may arise from
(a) overvalued exchange rates.
(b) export promotion policies.
(c) a current account surplus.
(d) all of the above.
A
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Changes in autonomous consumption could be the result of:
A. changes in inflation. B. changes in disposable income. C. changes in housing prices. D. changes in the mpc.
The flow of capital results from the changes or differences in interest rates among countries
Indicate whether the statement is true or false
At one time, people in a certain country had no access to banks; they relied exclusively on currency. Then, a fractional-reserve banking system was created. As a result, the money supply
a. increased. The central bank could have reduced the size of this increase by buying bonds. b. increased. The central bank could have reduced the size of this increase by selling bonds. c. decreased. The central bank could have reduced the size of this decrease by buying bonds. d. decreased. The central bank could have reduced the size of this decrease by selling bonds.
Refer to Exhibit 2-4. The opportunity cost of moving from point A to point B is
 ANSWER 10.png)