The combined effects of a fiscal contraction and a monetary expansion are
a. higher real interest rates.
b. exchange rate depreciation.
c. increased current account deficit.
d. All of the above are correct.
b
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Which of the following countries is the most corrupt?
A) U.S. B) Iceland C) Finland D) New Zealand E) Greenland
Aggregate supply grows over time because of growing consumer and government spending
a. True b. False Indicate whether the statement is true or false
The purchasing power parity theory predicts that the exchange rate between two currencies will adjust in the long run to reflect price-level differences between the two currency regions. A given basket of internationally traded goods should therefore sell for similar amounts around the world (net of transportation costs)
Indicate whether the statement is true or false
An inverted yield curve is a valuable forecasting tool because:
A. investors are expecting higher short-term rates in the future, and this usually signals an economic slowdown. B. inverted yield curves signal better economic times are expected. C. the yield curve usually is inverted so it reflects a growing economy. D. the yield curve seldom is inverted and can signal an economic slowdown.