Which of the following statements is true?
A. Under floating exchange rates, external capital-flow shocks can have effects on internal balance by altering the exchange rate and the country's international price competitiveness.
B. Monetary policy is a powerful economic tool for a country with fixed exchange rates and high capital mobility.
C. An expansionary monetary policy tends to increase the exchange rate value of the domestic currency in the short run.
D. Fiscal policy for a country with floating exchange rates is more powerful with a high degree of capital mobility than with a low degree of capital mobility.
Answer: A
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All of the following are government purchases except
A) the salary paid to Senator John Cornyn of Texas. B) the presidential pension paid to former President George H.W. Bush. C) the purchase of a new office building for the CIA. D) the purchase of new radar tracking equipment for the Navy.
At the federal level, transfer payments make up ________
A) about 98 percent of total outlays B) about half of total outlays C) less than one percent of total outlays D) the gap between government purchases and borrowing
At the outset of the Civil War, _______________ had a significant advantage in arms production; however, ____________ was able to increase production more rapidly
a. the South; the North b. the North; the South c. neither the North nor the South; the North d. the North; the North also
The real exchange rate is defined to be the:
A. value of goods in one nation relative to the value a similar set of goods in another country. B. rate people exchange goods and services in a domestic market. C. rate at which firms in different nations would be willing to exchange goods. D. value of goods in one nation relative to the value the same set of goods in another country.