Under a floating exchange-rate regime, with a contraction in the money supply, which of the following is likely to happen in the short run?
A. Inflow of foreign capital
B. Deficit in the financial account
C. Rise in the domestic price level
D. Increase in the country's holdings of official international reserves
Answer: A
You might also like to view...
Describe what is a J Curve?
What will be an ideal response?
Refer to the above figure. The equilibrium level of real Gross Domestic Product (GDP) is
A) $6 trillion. B) $7 trillion. C) $12 trillion. D) $20 trillion.
When a manager's bonuses are tied to multiple unrelated performance measures
a. we typically see the manager miss all goals by about the same amount b. we typically see the manager greatly exceeding some goals while missing others altogether c. we typically see the manager just meeting some goals while missing others by a wide margin d. we typically see the manager indifferent to the goals
Which of the following is a component of aggregate demand?
A. Net exports B. Income C. Government revenues D. Taxes