Within a fixed exchange rate system, the effect of an expansionary fiscal policy action on the balance of payments will be to
a. worsen the balance on the capital account but improve the trade balance.
b. worsen the trade balance but improve the balance on the capital account.
c. worsen both the trade balance and the balance on the capital account.
d. improve both the trade balance and the balance on the capital account.
C
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When protection is encouraged to protect a growing domestic industry; which of the following is being used?
A) Anti-dumping argument B) Save domestic jobs argument C) National security argument D) Infant-industry argument E) Diversity and stability argument
Which of the following is included in the calculation of national income?
A) compensation of employees B) rental income C) indirect business taxes D) all of the above E) none of the above
Which of the following would be considered a negative real supply shock?
A) a relaxation of government environmental regulations B) a permanent increase in the price of energy C) a decrease in the money supply D) a decrease in aggregate demand
If adopted by a firm, a labor-saving piece of technology is one that would:
A. decrease labor supply. B. decrease labor demand. C. increase labor supply. D. increase labor demand.