Under a gold standard,
a. a nation's currency can be traded for gold at a fixed rate
b. a nation's central bank or monetary authority has absolute control over its money supply
c. new discoveries of gold have no effect on money supply or prices
d. prices are constant (there is no inflation and no deflation)
e. all international transactions are financed with gold
A
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Refer to Figure 13-1. Ceteris paribus, an increase in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Which is not true of market equilibrium?
A. Circumstances can change from day to day which make any equilibrium very tentative. B. All sellers who want to sell at the equilibrium price can find a buyer to sell to. C. All buyers who want to buy at the equilibrium price can find a seller to buy from. D. It is the most desirable outcome that a social order could have.
Very high debt burdens can result in
A) fine tuning. B) automatic stabilizer. C) the structural deficit. D) tax smoothing. E) debt repudiation.
A deficit in a country's current account balance occurs whenever
A. money outflows from the country exceed its money inflows. B. money inflows into a country exceed its money outflows. C. its currency falls in value relative to other currencies. D. the country is alone in maintaining a strict gold standard.