Assume the government reduces government spending. What is the first round effect on the components of the balance of payments (assume low international capital mobility and fixed exchange rates; also assume that before the government action all the components were 0)?
a. Current international transactions balance and reserves account become positive; net nonreserve international
borrowing/lending balance becomes negative.
b. Current international transactions balance becomes positive; net nonreserve international borrowing/lending balance and reserves account become negative.
c. Net nonreserve international borrowing/lending balance becomes positive; current international transactions balance and reserves account becomes negative.
d. Net nonreserve international borrowing/lending balance and reserves account become positive; current international transactions balance becomes negative.
e. Reserves account becomes positive; current international transactions balance and net nonreserve international borrowing/lending balance become negative.
.B
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A) its price level doubled B) its gross domestic product also doubled C) its price level halved D) its gross domestic product remained constant
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A) residential land B) sunshine C) a machine tool D) oil
If 1 U.S. dollar exchanges for 3.98 Polish zlotys, how much would it cost in zloty to purchase a Ford Explorer priced at $23,000?
What will be an ideal response?
Starting from a pure exchange equilibrium, an increase in the demand for a commodity will result in:
a. a fall in the market price. b. a rise in the market price. c. a rise in the equilibrium output. d. a fall in the equilibrium output.