If a nation's central bank increased domestic interest rates, the nation's exchange rate would change if the country's exchange rate was a
A) a flexible exchange rate.
B) a fixed exchange rate.
C) a crawling peg.
D) a nominally fixed exchange rate.
A
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An important factor in producing the global financial crisis was
A) lax consumer protection regulation. B) onerous rules placed on mortgage originators. C) weak incentives for mortgage brokers to use complicated mortgage products. D) strong incentives for the mortgage brokers to verify income information.
A principal cause of the business cycle is the changes in total spending that occur in the overall economy
a. True b. False Indicate whether the statement is true or false
Since the 17th century, the United States has consistently ran a trade surplus in the export of ____________ products.
Fill in the blank(s) with the appropriate word(s).
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential