Tight monetary policy ________ interest rates which ________ the demand for a currency and ________ the fundamental value of the exchange rate.
A. increases; increases; decreases
B. decreases; decreases; decreases
C. increases; increases; increases
D. increases; decreases; increases
Answer: C
You might also like to view...
The government has a budget surplus if
A) there is no national debt. B) tax revenue is greater than outlays. C) government outlays are greater than tax revenue. D) the budget is balanced. E) a fiscal stimulus is being used to combat a recession.
In the 1970s, the U.S. relied on Command-and-Control models of pollution regulation.
A. True B. False C. Uncertain
Answer the following statement true (T) or false (F)
1) U.S. exports of farm products have generally declined as a percentage of U.S. farm output over the past half-century. 2) Increases in incomes usually result in more than proportionate increases in the demand for agricultural products in a growing economy. 3) Agriculture is overcrowded because of absolute and relative increases in the size of farm employment. 4) About 10 percent of the U.S. labor force is in agriculture.
Which is a valid counter-argument to the infant industry argument for protective tariffs?
A. It results in too many benefits for domestic firms that export goods and services B. It is difficult to determine which infant industries will become mature industries with a comparative advantage C. The objective would be better achieved through strategic trade policy D. The objective would be better achieved by import quotas and nontariff barriers