If a panic causes Indian depositors to withdraw their money from Japanese banks, it would cause the Japanese Yen to depreciate, since the supply of Yen has________
a. Not changed
b. Decreased
c. Increased
d. None of the above
c
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Were the government to decree that henceforth all wages and other input prices are to be indexed to nominal aggregate demand, this ________ "coordination failure" of the macroeconomy and ________ business cycles
A) solves the, amplifies B) solves the, dampens C) creates a, amplifies D) creates a, dampens
If a nation trades with another nation in a foreign currency (such as some commodities sold that are priced in U.S. dollars), then, when nominal exchange rates change, the real effective exchange rate will:
a. change by more. b. change by less. c. change in exactly the same proportion. d. not change at all.
When a country exports more goods and services than it imports, this is called
A. a balance of trade deficit. B. a balance of trade surplus. C. a positive terms of trade. D. a negative terms of trade.
A capital ________ can promote financial instability in an emerging-market country because it is what forces a country to ________ its currency
A) inflow; devalue B) inflow; revalue C) outflow; devalue D) outflow; revalue