Because of their effect on interest rates,
A. capital flows weaken monetary policy but strengthen fiscal policy.
B. capital flows strengthen monetary policy but weaken fiscal policy.
C. the initial effects of a fiscal expansion on aggregate demand are strengthened.
D. the initial effects of a monetary contraction are weakened.
Answer: B
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What properties distinguish private goods from public goods?
a. preventive and curative b. exclusiveness and rivalry c. social and cooperative d. merit and lack of merit e. market and nonmarket
An import quota is:
A. a limit on the amount of a particular good that can be exported. B. a tax on the good or services that are imported. C. a limit on the amount of a particular good that can be imported. D. None of these is true.
Suppose that new computer software for accounting and analysis at a business has a useful life of only one year and costs $200,000 before it needs to be upgraded to a new version. The revenue generated by this software is expected to be $250,000. The expected rate of return from this new computer software is:
A. 11 percent B. 20 percent C. 25 percent D. 80 percent
For a natural monopoly, long-run average costs
A) fall as output increases. B) rise as output increases. C) fall as output falls. D) rise as output falls.