The appreciation of a currency will:
A. balance a trade surplus.
B. worsen a country's comparative advantages.
C. improve a country's comparative advantages.
D. have no impact on a country's comparative advantages.
Answer: B
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Which of the following is an example of fiscal policy?
A) a reduction in the money supply. B) a reduction in the federal funds rate. C) a reduction in lump-sum taxes. D) an increase in the physical stock of capital.
When a country specializes and trades with other countries, it is most likely that it specializes in goods for which
A) it has a comparative advantage. B) it has an absolute advantage. C) it has no advantage. D) are very costly to produce.
Regarding structural deficits, which of the following assertions is true? a. The structural deficit depends on the state of the economy
b. The structural deficit is basded on actual expenditures and receipts. c. The structural deficit change only when policy changes. d. The structural deficit changes when GDP changes.
Autonomous spending in a closed economy equals which of the following?
A) c0 + I + G - c1T B) C + I + G C) Z D) c0 + I + G + c1T