With flexible exchange rates, the imbalance between debits and credits arising from shifts in currency demand and/or supply is accommodated by ______.
a. special financial borrowings
b. fixed exchange rates
c. changes in currency prices
d. reserve movements
c. changes in currency prices
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"Currency" is a more encompassing term than "money" to denote acceptable mediums of exchange
Indicate whether the statement is true or false
Over a period of time, a nation's GDP increases by 3 percent at constant prices and by 5 percent at current prices. Other things being equal, the price level changed by about:
a. 2 percent b. 3 percent c. 8 percent d. 5 percent
In general, who will benefit as the result of a tariff? I. Domestic producers II. Domestic consumers III. The domestic government
A) I only B) II only C) both I and III D) both II and III E) All of the above are correct.
In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of
A) 0 percent and 30 percent. B) 30 percent and 100 percent. C) 0 percent and 100 percent. D) None of the above answers are correct.