With fixed exchange rates, external capital-flow shocks have little impact on a country's economy.
Answer the following statement true (T) or false (F)
False
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Global technologies, such as electronics, have made up a significant portion of the recent wave of manufacturing offshoring
Indicate whether the statement is true or false
In the figure below, we see an expansion of the production-possibility curve (from PPC1 to PPC2). The two goods produced are wheat and cloth, which are land-intensive and labor-intensive, respectively. The outward shift of the production-possibility curve shows
A. biased growth. B. a move from a no-trade situation to free trade. C. an increase in the production costs of both goods. D. balanced growth.
In the market for bank reserves, a reduction in the required reserve ratio will cause
A. a reduction in the demand for reserves. B. a reduction in the federal funds rate. C. an increase in the equilibrium quantity of reserves. D. all of these.
Which of the following will lead to an outward shift in the firm's short-run demand for labor?
A. a reduction in average consumer income B. an increase in the price of output C. less capital per unit of labor D. a decline in labor productivity