A country running a current account surplus over many years is likely to see its exchange rate:
A. hold steady.
B. appreciate.
C. the rate can rise, fall, or hold steady; the current account and the exchange rate are not linked.
D. depreciate.
Answer: B
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The CPI market basket
A) weights the goods and services according to the budget of an average urban household. B) determines the best possible way of taxing the average urban household. C) determines how the spending patterns of the average urban household change from month to month. D) determines how spending patterns change from urban household to urban household. E) changes from one month to the next in order to calculate the CPI.
Refer to Table 11-4. In the table above, which countries are consistent with the predictions of the economic growth model?
A) all four countries B) Japan and Guatemala C) only Japan D) Botswana and Thailand
Because people's wants are unlimited but resources are scarce,
a. only the rich get everything they want b. choices must be made c. there will be more services produced than goods d. people search for spiritual fulfillment rather than material fulfillment e. poor people never get anything they want
Unemployment insurance payments act as automatic stabilizers by:
a. allowing for more consumer spending during prosperity. b. making the unemployment rate worse during a recession. c. allowing for more consumer spending during a recession. d. changing the Phillips curve to a Laffer curve.