Under the current managed float exchange rate regime; countries with surpluses in their balance of payments frequently do not want to see their currencies appreciate because it makes their goods ________ expensive abroad and foreign goods ________ in
their countries. A) more; cheaper
B) more; costlier
C) less; cheaper
D) less; costlier
A
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What is the natural unemployment rate?
What will be an ideal response?
Easy monetary policy and tight fiscal policy lead to
A) high real interest rates. B) low real interest rates. C) roughly unchanged real interest rates. D) roughly unchanged real interest rates only when Ricardian equivalence holds; otherwise, low real interest rates.
Rapid increases in military spending by the federal government without accompanying increases in real output could be a cause of cost-push inflation
a. True b. False Indicate whether the statement is true or false
As capital goods depreciate, the growth of labor productivity will increase
a. True b. False Indicate whether the statement is true or false